Excerpts from the discussion:
Mr. Tamal Bandhopadhyay, Adviser, Strategy Consulting Editor -Bandhan Bank Live Mint
Moderator, Mr. Tamal Bhandopadhyay, started the discussion on the note that the topic revolves more around political stance than an economic one; the root of which is slowing down of China.
Mr. J. K. Vishwanathan, Chief Credit Officer - Development Credit Bank
Mr. J. K. Vishwanathan started the discussion by telling that, before asking whether it is the right time for India to lead the global growth, we should first analyse if India is heading in that direction with the right contributors of economic growth and government policies in place. He also said that in 1999, when China entered the World Trade Organization, it was ranked below many countries, but has now climbed up the ladder. He was optimistic and said that though we are not going bigger than China, we are heading towards a better future. He went ahead to explain the factors which hinder the growth process like low capacity utilization, problems related to infrastructure and land acquisition. He also highlighted the issues faced by the banking sector in India such as negative operating cash flows. He suggested that the government can come up with right policies to assist banking sector and facilitate growth.
Mr. Ashwini Mehra, Deputy Managing Director & CDO - State Bank of India
Mr. Ashwini Mehra talked about the growth rate of developed countries like US and Japan and told that developed countries grow faster than emerging economies. He told that India is in a sweeter spot with 7.5% growth rate. Though he supported the topic and said that India will definitely lead the global growth in five years, he also highlighted the problems which can act as roadblocks like issues faced by banks to raise capital, problems faced by private sectors due to government policies etc. He went ahead and spoke about the positive measures which are driving the growth process such as Make in India, financial inclusion etc.
Mr. Vishwanathan Iyer, Director, Head of Institutional Banking - National Australia Bank
Mr. Vishwanathan Iyer was of the opinion that to lead global growth, not only GDP, but many other factors also come into play. Slowing down of China might not be an opportunity in real sense as it is affecting some sectors in India too. First we have to get our internal act together. For example, democracy has its own challenges; the labour laws in India have some pitfalls, contemporary issues in banking etc. Public expenditure and consumption is increasing and the focus needs to be on these serious gaps instead of global growth, he said.
Mr. Shreenivas Kunte, Director of Content - CFA Institute
Mr. Sreenivas Kunte, spoke about the fundamental attribution error and the anchoring effect in policy makers. He was against the idea of competition and was of the opinion that old power structures will not allow growth. Growth will happen anyway but it should trickle down to the masses, he said.