There is a lot of of optimism in the country given the new government, there is a sense of positivity that has taken over. Do you think actions taken by new government so far are promising?
Deepak Parekh: It takes time for the reforms to be implemented. There are procedural changes, which need enough time. Government has taken a big step of diesel subsidy waiver. All government bidding will be done through net, this will bring-in transparency. We need to understand that GST is good for the country. It is a big country, there are complex issues, things will take time to materialise.
What is your take on GDP of the country?
Deepak Parekh: It is not possible for GDP to touch 9% in one year. Foreigners have high expectations from India. Growth should inch up gradually.
What should be the government's priorities at this point and time?
Deepak Parekh: Government has taken good initiatives so far. Initiatives like Digital India, Clean India, Make in India are good for the country. Make in India is a very important campaign. Manufacturing sector has been on a downward spiral due to number of approvals. PM knows very well how to make 'Make in India' a great success. He knows how to make it more customer oriented. Make in India campaign will help create jobs in the country. Gujarat is readily giving land to set up industries and open universities. Approvals for housing should be eased. There should be one window approval.
At present ,we need to have nearly 50 approvals to build a house. It takes almost 2-3 years to get all the approvals. Slew of approval gives rise to corruption. Hence, there should be one window approval.
BJP is getting powerful. Are you seeing this translating in Maharashtra as well? How hopeful are you?
Deepak Parekh: I am very hopeful. Devendra Fadnavis is a young energetic Chief Minister.
There is optimism in the market and it is termed as Modi rally. Do you think market is running ahead of time?
Deepak Parekh: Too much money is chasing India. Foreigners are wanting to invest in India There is too much liquidity in the market. The advantage of India is that it’s a deep market. SEBI, NSE and BSE have made lot of improvements in the market. They have brought ease of buying shares.
Expectations have build up for re-rating . Do you think re-rating is possible in this financial year?
Deepak Parekh: Rating agencies would want to see what is the policy thrust. May be after budget, India's rating may come one notch higher. I am confident that in 2015 we would be one notch higher.
There are high expectations that RBI may cut rates. Do you see Raghuram Rajan going ahead and cutting rates?
Deepak Parekh: It is not possible to bring down inflation in 1-2 months. 25-50 basis points rate cut is possible. We need to see a sustained fall in inflation.
What are your growth expectations in the next 2 years? Can we be closer to 8%?
Deepak Parekh: I am expecting 100 basis points more growth rate, more than that its difficult. Investment decisions will take time to be implemented.
What does the government need to do to increase the pace of growth?
Deepak Parekh: Government needs to work a lot on governance. Taxation is a big issue, both direct and indirect.
Service tax is also an issue. There are lot of disputes in transfer pricing. We need to improve taxation, transfer pricing. We need clarity on taxation. We need judicial, electoral and police reforms. State government must initiate judicial, electoral reforms. I will meet chief minister and request for police reforms. It is an essential requirement.
Do you think government is at a point where it can choose which side of the fence to stand on? If the government does not encash on the opportunity, it will be one of the biggest blunders. Your thoughts?
Deepak Parekh: Take off has just begun. We are optimistic. We need to give government a chance.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}