Godrej Industries Ltd’s Managing Director Nadir Godrej said here that bureaucrats in Delhi have begun working under the Narendra Modi government, which would improve economic growth in India.
“Compared to the slowdown last year, one positive thing, is that bureaucrats are working much harder in Delhi. There are nine o’clock in morning meetings which they never did before. Golf courses in Delhi are all empty now. These factors definitely impact the growth trajectory,” Godrej said on the sidelines of the Fourth International Conference on Soaps, Detergent and Cosmetics, which began here.
Godrej said the Narendra Modi government has projected itself to be business friendly which the previous government never did.
“Whether a government is business friendly or not is a different issue, but even saying that it is business friendly itself has a huge impact.
Confidence levels have risen. The stock market rose very fast. People felt wealthier and they started spending money. So the economy grew faster,” he commented.
The industrialist said that there are also external factors which have nothing to do with the government, that has begun contributing to the nation’s growth story.
“From the year 2000 to 2013, commodity prices were rising. There was an increase in prices of metal, oil, agricultural commodities and others. Part of the reason was Chinese demand and part of it was financial speculation in the commodities market. Chinese demand was huge. High prices brought new supply of commodities and ultimately the prices boomed. That has worked positively for India,” he said.
Replying to a question, he said that it is sheer coincidence that commodity prices scaled down when the Modi government came to power.
“However, government approvals began coming faster, confidence levels have risen and time-bound approvals are working well,” he said.
Godrej said that the government had promised several things, of which many things have not happened, but even if only a few things happen, economic growth would be very good.
“Some of the external factors which has nothing to do with the government are very positive. Budget deficit is falling. Current account deficit is improving. GDP growth is also good. In fact, experts at CII meetings say that the only problem now is bad debts of the government which seems to be slowing down infrastructure development,” he said.
“Other than this, everything seems to be working well for India right now. The earlier government ran welfare schemes for the poor but the new government is trying to create job opportunities which makes government people friendly,” he added.