Nagpur News : A talk on “Indian Economy at the Cross Road” by Dr V. Aditya Srinivas, MBA (Gold Medal), Ph.D, MDP (IIM Ahmedabad), CWM, presently, Chief Operating Officer & Chief Economist, Bombay Stock Exchange Brokers’ Forum, Mumbai held at VIA.
The speaker initiating his talk said year-on-year (y-o-y) real GDP growth slowed from 5.5 per cent in Q1 of 2012-13 to 5.3 per cent in Q2. The decline in the GDP growth rate became broad based, with consumption demand also slowing alongside stalling investment and declining exports. On the supply side, there are indications of weakening resilience of services to sluggish global growth. India is the most attractive investment destination in the world. The Indian economy is expected to grow at 3.4 per cent in the current fiscal, a slight increase from 3.3 per cent in FY 2012–13, as per projections from the Organisation for Economic Co-operation and Development (OECD). The growth is estimated to be even greater in FY 2014–15 (5.1 per cent) and FY 2015–16 (5.7 per cent).
The speaker said India has potential to grow three times ahead. India has the highest young working population. But foreign investors are feared to invest in India due to change in policy any time and non clarity of taxation system in India. Indian economy requires sustainable growth. FDI will open new opportunities. Similarly, Government needs to look into fiscal deficit and current account deficit. They need to reduce unplanned expenditure and reduce wasteful expenditure to increase revenue.
Sitting on Dias from left to right: Kanchan Naidu, Prafull Doshi, Dr V. Aditya Srinivas & Rohit Agrawal.
Summing up his talk, the speaker said a slow recovery is likely to shape up with progressive implementation of some of the reforms announced. These include, inter alia, liberalisation of FDI in multi-brand retail, amendment of the Banking Regulation Act and the setting up of the Cabinet Committee on Investments to expedite decisions on approvals/clearances for implementation of mega projects. The setting up of debt funds to provide long-term resources for infrastructure projects would help in reducing financing constraints currently facing the sector. Financing is also expected to improve with the government accepting the major recommendations of the Expert Committee on General Anti-Avoidance Rules (GAAR) that will bring about greater clarity on taxation aspects. Global risks may have temporarily reduced in terms of part resolution of the US „fiscal cliff‟ issues and financial fragility issues in the euro area. However, going forward the euro area risks remain significant, as key economies in the region are contracting. In this milieu, it is imperative that reform measures continue to be executed efficiently and domestic inflation recedes further, to support sustainable recovery in India current economic scenario and the way the entire economy has slowed down and the measures required to be taken to revive the economy. The Indian capital market and its dependence on the Foreign flows of FII. The need for FDI and its implication on the economy and other current aspects affecting the economy.
At the outset, floral welcome of the speaker Dr V. Aditya Srinivas, was done by Prafull Doshi, President-VIA, the summing up and vote of thanks was done by Rohit Agrawal, Hon. Secretary –VIA and the programme was conducted by Kanchan Naidu, Convener- Finance Forum-VIA.
The programme was free and was open to all. The programe was attended by large number of participants which includes students, Entrepreneurs’, Businessman, VIA members & general public.
