The optimism around India has caught global attention. In line with various business leaders that have visited the country over the last few months, Dennis M Nally, chairman, PricewaterhouseCoopers International since 2009 was also here last week. In an interview to Sandeep Singh, Nally said that he was enthused by the pro-business and investment government at the centre and that the right steps can take India back to 9 per cent growth rates. Excerpts:
How do you see the country faring under the new government and how is India positioned amidst the slowdown across various economies?
Post the Modi government, it has been very positive and the investment community is receptive to what the government is expressing. We are in a very challenging global economic environment and it is going to remain so over the next 12-18 months. Europe is going through a major slowdown, Germany is projecting a slowdown and China as an economy is slowing.
However, the opportunities and potential in India are very significant and I think with the right collaboration between private and public sector, the potential for this economy is much greater than 5 per cent. I think 9 per cent is achievable.
What raises your optimism on India?
You have a very pro-business and pro-investment government. The very fact that the trade issues between US and India were resolved in a very positive way, I hope they will be concluded in positive way. But ithas sent a very positive message that the government is very serious about doing its part.
What reforms would you like to see?
The business is looking for consistency and predictability. As an investor you are looking at that kind of environment that can encourage you to look at the risk reward of an investment and how they stack against the alternatives before you. You talk about investment in infrastructure and it’s a 10- 20 year investment and as an investor what you want to see is a framework that allows you to get comfortable from a risk return stand point.
Does the rise in stock markets raise concerns?
I think people are making investments based on their assessment of the potential. With a government like this and with the statements that have been made so far, I think there are words of encouragement for investors. While there is optimism, I think the challenge now is to begin to deliver on some of these issues that have been talked about.
How do you think India should move forward on manufacturing?
If the mindset is to follow what has been done elsewhere, which is just a pure labour play, then, I think India is missing out on a real opportunity here. I think education and skill development will play an important role. If we are educating the young today, for the skills of the past, then it won’t be fit for purpose in the next 10-15 years.