A survey of CEOs has revealed that the next three years would be "promising" from the economic and organisational growth perspective. The report shares views given by around 125 CEOs from India, all from different sectors.
Richard Rekhy, CEO, KPMG, India said, "Both, the Indian business community and the global business community are bullish on India as an investment destination. As compared to other countries, India faces relatively less number of issues and challenges. India is a largely untapped market and what is more exciting is a young population turning consumers." Harsh Goenka, chairman, RPG Enterprises, sees India vying for "a gold or silver medal" on the podium in the future. He said, "Business transformation tops the agenda of every CEO where they are reorienting the strategic template for M&A, cost-effectiveness and leadership. The future is certainly bright for India."
Sanjiv Puri, COO, ITC, said the optimism on India's growth prospects is manifest in ITC's investment outlay of over £2.50 billion. He also said that doubling farmer incomes coupled with the proposed GST and stability in the tax regime should help in restoring consumption demand, which will trigger investments and be a force multiplier for the economy. Over the last few weeks, Indian conglomerates in particular have undertaken organizational restructuring and this is one factor that comes out strongly in the report as well. Recently, the Tatas said they were disposing of an old fertilizer asset. The Aditya Birla Group, on the other hand, announced a complex merger scheme between two group companies. CEOs have adopted a rather aggressive approach for growth, both organic and inorganic, with one in two envisaging an acquisition or merger in the near future.
Meanwhile, Rekhy said investments have to start flowing back by domestic companies. "This Diwali, we see India bouncing back in many ways. The monsoon is good. The MGNREGA money has gone into the economy and we will see the 7th Pay Commission money going back into the system. This will spur consumption. People who want to buy white goods, would do so. Companies could post better third quarter sales growth," he said.
