RBI has cut the rates twice in 2015 and Sensex has breached 30,000 mark but the economy still is awaiting for action on the ground. Raamdeo Agrawal, joint MD, Motilal Oswal Financial Services told Sandeep Singh that the Land Bill is a concern area and if it gets stuck, growth may get hampered. Excerpts:
Several people have raised concerns that nothing is moving. What is your take on that?
In my discussions I have learnt that things are moving. People are saying that there is no corruption at the top level. There is transparency coming into the system and files are not getting stuck. I however agree that on the ground, the economy is not showing buoyancy. I understand that it may take time to see things moving on the ground but for me the problem lies on the front that orders are not flowing in even for large companies and that is where the disconnect is.
Do you see Land Acquisition Bill as a major concern
We are a big country and are second largest in the world in terms of arable land. As a nation we have to decide if 10 per cent of this land can be made available for industrialisation.
As far as the issue is concerned we have to be a little liberal and people should go for whatever is good for the country and not pull the growth back. There are many dampeners and this is one of them. The government needs to identify them and shoot them down one by one. This is an important issue and if for some reason, it does not sail through, it will impact growth.
Is India looking good only because others are not doing well?
The global economy is weak, commodity prices have softened, income levels of various countries have dropped. Maybe because of this overall slump, there is a case for breaking out but since most of the economies are not growing and exports not taking-off, you will need to put double the effort in India. This means that you have to increase government expenditure on capital side and resource mobilisation would be critical.
While India looks to take off, everyone’s eye is centered on it and it’s important that we behave like one.
When do you see revival in corporate earnings?
I think it will be in the second half of next financial year. I genuinely think that the oil bonanza that has come will benefit the companies too.