Indian corporate sector expects the economy of the country to recover from the ongoing slowdown in the coming two to three quarters. In conversation with India Today's Rahul Kanwal, Mahindra and Mahindra Managing Director Pawan Goenka and SpiceJet Chairman Ajay Singh evinced hope that growth in India will return by the second quarter of the next financial year.
Mahindra MD Goenka said that the positive outlook associated with India has not changed because of the ongoing slowdown.
"The months of November and December have been better than what we thought. Still not out of de-growth, but it is less than what we had some time ago. And the overall vision on what might happen in Q4 (of the current fiscal) is the same. De-growth will come down to low single digits, hoping that, with Q1 coming in, it will become flat and Q2 (of the next fiscal) is when we start seeing growth," Goenka said.
In response to a question about IMF's recent world economic outlook blaming the slowdown in India for an 80 per cent downturn in global GDP outlook, SpiceJet's Ajay Singh that the Indian economy is bound to grow.
"Despite all the gloom and doom, India is one economy that is bound to grow. There are some things that we need to fix. There needs to be a focus on expenditure. This credit freeze needs to go away. All those issues are internal to India. We need to fix them. But if you look at it from a global perspective, India is one of the few bright spots. The world will look to India to fuel global growth," Singh said.
Over remarks that India might be in the midst of a recession, Singh said: "You will see this economy climbing out of the current situation and the same people who are saying that we are in the throes of a recession will change their tune in another two or three quarters. The government understands fully well that steps need to be taken to increase investment to aid growth."
The SpiceJet boss said representatives from India should put their best foot forward and explain all that is right with the country at a forum like the World Economic Forum
Goenka appreciated the government's pro-active interaction with the Indian corporates during pre-Budget consultations, adding that this has enhanced their expectations from Union Budget 2020.