On IMF’s growth forecast for this fiscal
IMF’s estimates of a fall in the country’s GDP (gross domestic product) is wrong. The projection is wrongly based on the decline seen in the previous quarter.
On monsoon impact
Better monsoon will reflect in agricultural growth and have a multiplier effect. Growth is expected to be around 5-6% this financial year. It will increase in the second half.
On trade data
Current account deficit could touch $70 billion and balance of payment will remain positive. The correct range for the rupee would be 57-60 against the dollar.
On consumer sentiment
Consumer looks for job security before buying a house or a car. Negative consumer sentiment is reflected in automobile and real estate sectors.
On expectations from the Reserve Bank of India (RBI)
RBI should reduce the repo rate. This will boost economic growth. A hike in repo rate, on the other hand, will lead to difficulties. RBI should now shift the focus to growth. As for inflation, it is expected to reduce 2% by March.
On UPA performance
The government took quick steps for improvement during the 2008 crisis. But decision making has slowed down in the last two years. The government was unable to take decisions due to fear of court cases, CAG, anti-corruption movements, etc, because of which the economy has suffered. However, some improvement is expected in this quarter.
On populist schemes
Populist policies help meet smaller requirements of people. The priority should be growth. Less focus on growth by the government has increased difficulties. RBI, government and industry must work together to enhance growth.
On Gujarat’s growth model
Along with Gujarat, Madhya Pradesh, Haryana, Chhattisgarh and Bihar are also well-developed. Chief ministers must concentrate on law and order and entrepreneurship.
On RBI policy in the last two years
RBI has not made good policies in the last two years. RBI policies in the past two years have neither brought inflation under control nor improved growth.
On growth strategy for Godrej Consumer Products (GCPL)
GCPL has expanded mostly in emerging markets. It has a 3X3 model in place specifically for expansion in Asia, Africa and South America, with focus on products like personal wash, hair care and household insecticides.
On strategy for other group businesses
The focus is largely on India. Domestic markets are quite big for expansion, for Godrej Properties, Godrej Agrovet and the consumer durables business. For one, Godrej Properties has a huge potential for expansion. We won’t acquire companies to expand the real estate business; we plan to acquire large projects. We expect the property market to improve during October-November.
Between Dussehra and Diwali, people will take advantage of special offers by banks.