Porinju Veliyath believes that Uttar Pradesh has the potential grow to to the size of the current Indian economy in the next 20 years if the state is well managed politically. In a conversation with BTVI, the ace investor said, “The population of Uttar Pradesh is equal to Brazil which has a $2 trillion economy today. Uttar Pradesh alone, if well managed for the next 20 years, can come to the size of India, as an economy.” The MD of Equity Intelligence India says that the state has the size, and now only needs to focus on wealth creation.
According to Porinju Veliyath, politics has been the Achilles heel of India on the road to development. In the same conversation, he pointed out, “The rotten politics in the last 6-7 decades has finished the potential of India’s growth, now it has to be rebuilt. Generally, politicians have been very selfish.”
Contrasting the scenario in Scandinavian countries with India the ace investor pointed out, “The most educated people, well to do citizens, they are coming into politics in the Scandinavian countries to really serve the country. They have no vested interest of making money here and there. That is extremely at the other end of the spectrum, we may not go to that level. In India, the bad guys got into politics. Politics of late, is failing to attract talent. A decent person cannot get an idea of going into politics. Politics is the second largest employer in India. Jobless people, those who are lazy to work, get into politics in India.”
He says that the perception needs to change. “It’s very important for us to change that perception about politics.” Further, he believes that the change is already happening. “There is an awareness among all the Indians now. This will go a long way in economy also,” he said, adding that it will not take time for India to be a $10 trillion economy.
The Indian markets are set to raise Rs 1 lakh crore in the next 12 months, according to experts. Sharing his view on the buzz, he said, “ The new IPOs coming up and it’s going to be in the future also, are mostly quality companies which are very unlikely to cheat investors.” The expert pointed out that in the 80s and 90s, people lost faith in equities as many fraudulent companies entered the market. “Lot of investors are scared to invest in equity due to this IPO fraud in the 80s and 90s in India. Now that is changing. The regulators are very strict and companies are behaving more responsibly,” he said.