Ratan Tata today said that he expects India to re-establish its economic growth at 7 per cent plus rate in the next couple of years but it will not be able to achieve over 8 per cent it had prior to the 2008-09 global financial crisis.
The Chairman Emeritus of the Tata Group said that the recent steps by the government have restored investors’ confidence in the country, but more needs to be done.
He noted that efforts to control inflation plus scams, and other issues, resulted in slowdown in economic growth to five or sub-five per cent.
“To many, it has been like a recession,” he added.
“I think we will re-establish at 7 plus per cent growth rate in a couple of years driven by the fact that we have got pent-up demand in the country.
“But it is not going to be as attractive as it has been in the past,” Tata said during a dialogue session with the Singapore Management University students.
Responding to a question on the recent economic measures in the Indian Budget for 2013-14, he said: “One must ask is it enough or is too late. My own feeling is that some of the confidence in the Indian economy, perhaps among investors, is restored.
“But there is a lot more that needs to be done if India is to be moving back to the visibility and the attraction that it had some years ago.
“May be just moderate moves are not going to be enough to undo the damage that has been done over the last few years.”
The measures “are very moderate and perhaps, signs of moving into the right direction,” he told some 500 students, academics and business community at the session.