The Centre and state governments should work together to implement measures on the ease of doing business in India, said Kumar Mangalam Birla, chairman, Aditya Birla Group, in an exclusive interview to CNBC-TV18. “Now with the BJP having the kind of national mandate that it has, there cannot be a better time than now to expect that to happen. That is one thing that can move the needle and make a huge difference,” he added.
The government needs to build infrastructure in order to expand India's economic growth to 8-10 percent from the current 6.5-7 percent, said Birla. “Developing infrastructure is not just important to sustain growth, it is also important from the point of view of creating jobs, of creating employment and the whole virtuoso cycle that goes with that,” he further added.
When asked how would corporate earnings pan out in the coming five years - would there be a breakout or slowness would persist, he said, “I think it has to be a sector by sector and company by company approach, so you cannot generalise and say we are breaking out or we are stuck, it depends on which sector or even within a sector you have 2 or 3 stars that all of us know about.”
Talking about the current struggle in the financial sector, Birla said, “Any regulation today is going to separate the men from the boys and it depends on how fast the RBI wants to come in and provide a bailout or they want that shakeout to happen." He said there are 2 or 3 such names quite unexpectedly and "I think whether it takes a month or three months that process of separation will definitely happen,”