New York: As US businessmen and investors await Prime Minister Narendra Modi's US visit, the investor community and the industry leaders on September 25 said the success of 'Mangalyaan' goes on to prove India's growth story based on 'frugal innovations'.
Debating the investment scenario in the country during an India Investment Forum conference, a group of industry leaders from India said it was a vast and complex country but one that presented huge growth opportunities if right reform decisions got implemented in time. They also expressed optimism that the new government, led by Modi, would fast-track the reform process and remove the red tape and other concerns that investors have about India.
"The Mars landing story signifies two things. One is that it proves the frugal innovation and indigenous innovation concept that is at the core of India growth story and then this mission has become successful after 30 years of efforts and that too at a cost much lower than the similar missions of NASA," Aditya Birla group's president and chief economist Ajit Ranade said.
With the success of its Mars Mission 'Mangalyaan', India became the first country to succeed in the very first attempt. At the conference organised by Institutional Investor Forums, leading stock exchange BSE's Chief Executive Officer Ashishkumar Chauhan said that India was very complex, but it had many advantages to its credit including its young population.
"One large investor told me here that earlier he was looking at two countries -- Brazil and India -- for investments, but now he has zeroed in on India after the new government got such a huge mandate and things were not looking that great in the South American country," Chauhan said.
The BSE CEO also said that the capital markets segment was making great strides in India and it is not just a place for trading for the sake of trading but also an avenue for capital formation. Talking about the new government, Chauhan said there have not been any radical steps so far in the first four months but he was hopeful that "it will work towards making India a much better place to invest and do business."
Anil Bhandari, Senior Vice President (Investments) at Morgan Stanley, said there were great expectations among the investors from the new government and the reform process should pick momentum soon. He also flagged a concern among the international investors about cases of insider trading in India, to which BSE CEO said that the new regulations, including those under the Companies Act, 2013, and those prescribed by Sebi, has strengthened the framework to tackle such concerns.
Birla group's Ranade said the annual economic growth rate in India was expected at 6-6.5 per cent in the near term and the single-biggest concern remains inflation. He also lauded the reform measures initiated by the new government including the Judicial Commission, Jan Dhan Yojana to give bank accounts to everyone and the proposed replacement of Planning Commission with a new body. He said these measures would have long-term implications.
