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He also recommends greater clarity on companies going through


December 21st, 2013

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Short term job creation looks near impossible, Bhargava feels. “We have been focusing on the wrong kind of manufacturing for 60 years, and will have to pay the price,” he says. In the medium to long term, the growth strategy itself needs to Replica Bags be rejigged. Many believe India should follow China’s model in developing infrastructure railway stations, metros, ports, national highways. “In China, a growth of 2.5 per cent in GDP came from housing, 2 per cent from manufacturing and another 2 per cent from infrastructure,” says Hiranandani. But that needs positive investor sentiment, currently missing in India. Bank credit has fallen by 50 per cent, adds Hiranandani. In many cases, credit is sanctioned but not availed of. New projects are not coming up as private investment is drying up. The role of the private sector in housing needs to be encouraged, as the government cannot do it all. “Focus on construction will also boost the steel and cement industry. We need to follow the rest of the world in development, not the US,” Hiranandani adds. He also recommends greater clarity on companies going through insolvency, since the public has its money stuck in these projects.

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