Have Not Been To Udyog Bhavan In Ages Now, Says Pawan Munjal
The next 25 years are India’s years, says the Hero MotoCorp chief.
The post-liberalization era and the current government’s ease of doing business policy have found an admirer in Hero Motocorp chairman and Chief Executive Officer, Pawan Munjal.
Next 25 Years Are India’s Years
Speaking to Bloomberg on the sidelines of the World Economic Forum’s India Economic Summit 2016, Munjal said he was happy with the progress India has made as it moves towards achieving a sustained double-digit growth path in the long term.
I have not been to Udyog Bhavan in ages now. Reforms are happening. There are a lot of things taking place in the background. Although the results have not been seen in totality on the ground, sooner or later, they will begin to take shape. I am optimistic that the next 25 years are India’s years.Pawan Munjal, Chairman & CEO, Hero MotoCorp
He, however, said the government should come out with a roadmap for the next 5-10 years on infrastructure, employment, etc, which gives a clear view to the industry in stead of depending on the budget announcements every year for such policy directions.
Land And Labour Reforms
With important reforms like the Goods and Services Tax out of the way, efforts must now be made to initiate land and labour reforms, which are critical to boost the manufacturing sector, Munjal said.
Land and Labour reforms are very very important for the industry, for manufacturing. Right now, both are inconsistent. For expansion, it is so difficult to get land. For expanding manufacturing, the capacity in labour is extremely important. There are lots of issues...these two are very important.Pawan Munjal, Chairman & CEO, Hero MotoCorp
Need Mechanisation In Agriculture
But the state of agriculture has Munjal worried, especially since 50 percent of Hero sales comes from rural India. He hopes for more mechanization in agriculture, which will free up manpower that can then be utilised in the manufacturing sector.
According to data from the World Bank, the contribution of agriculture towards India’s gross domestic product dropped to 17.4 in 2014 from 26.3 percent in 1995.
I am concerned because 50 percent of Hero’s total sales come from the rural market. But more than the lack of farming, I wish there was more mechanisation. Instead of 50 percent of the people working on farms for a 14-15 percent contribution to the GDP, the people can be used in the manufacturing sector that contributes more than agriculture.Pawan Munjal, Chairman & CEO, Hero MotoCorp
Corruption: The Speedbreaker To Growth
When asked about the impact of corruption on India’s growth, Munjal said although the problem has been almost weeded out at the upper echelons of government bodies, the problem still persists as one climbs down the ladder. Certainly, corruption still remains a hindrance to growth, he added.