Till clarity emerges on policy, there’s little chance of investments picking up
Aditya Puri:I think there is a disproportionate focus on interest rates; interest rates are not the reason for investments having slowed down. If there is a slowdown, it is because of the sentiment and that is linked to banks' lending because banks need to get their money back. There are issues on environmental clearances, there are issues on coal. The sentiment is changing, but you can't expect it to be a tap that you switch on and which will see people rushing to fund projects.
SJ: How many years do you think it will take to get back to 34-35% investment levels?
AP: The fiscal deficit is too high as is the current account deficit and you have subsidies and uncertainties in terms of execution. With all these problems we have about 5.3-5.4% GDP growth. I
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