Country's largest asset management company HDFC Mutual Fund is optimistic of India's growth prospects going forward as it sees most fundamentals improving, a top company official said.
Mumbai: Country's largest asset management company HDFC Mutual Fund is optimistic of India's growth prospects going forward as it sees most fundamentals improving, a top company official said.
"I would look at it (growth) optimistically...Most of the fundamentals and corporate performance seem to be improving going forward. Therefore, there is a reason to believe that our growth trajectory will be higher. The debate is only how much higher and how fast the growth can recover," Managing Director of HDFC Mutual Fund, Milind Barve told PTI in an interaction here.
Talking about some of the parameters, Barve said that improving current account deficit, fiscal deficit and falling inflation indicate improving fundamentals of the domestic economy.
"Clearly, we have seen last two years of low growth. We see growth going forward picking up. We have not achieved the growth rate to our potential. We are looking for a recovery in next one year and in that context, we expect, that some of the concerns that the economy has faced like current account deficit, fiscal deficit and inflation seem to be improving going forward," he added.
When asked to quantify the GDP numbers for the next fiscal, Barve said that it would be at least 5.5 percent.
"We believe that growth will recover...FY15 number should be at least 5.5," he said adding that it is important that we get back our trajectory of growth upwards.
Finance Minister P Chidambaram in his interim budget presented earlier this week had said that current account deficit (CAD) will be around USD 45 billion for this fiscal, which is less than three percent of the GDP, fiscal deficit for this fiscal is likely to be 4.6 percent, indicating improving fundamentals of the economy.
On the key task for the next government that can drive growth, Barve said: "One element that the new government can address is capital investment, particularly from the private sector, which is falling down significantly. (This) can pick up once business confidence about the policy framework comes in place, which can be significant driver of growth."
He also said the next government should be a stable government with stable policy making framework and business-friendly approach that will drive private sector investment.
"I think, building that business confidence through these things should be the first thing.... (for the next government)," Barve said.