Not many infra projects getting off ground a concern: Munjal
Chandigarh: Hero MotoCorp Joint MD Sunil Kant Munjal on Saturday said the country's economy will grow over 5 percent in current fiscal though not many infrastructure projects getting off the ground still remained a concern.
"I think it (GDP second quarter growth of 4.8 percent) is better than expected..I think we will end up this year with 5.25 or 5.3 percent growth as second half (of current fiscal) will grow by over 5 percent," Munjal told reporters here today on the sidelines of seminar on 'Industry Academia Connect' organised by ISB Mohali campus.
Country's economic growth in July-September quarter marginally grew by 4.8 percent.
However, he said the lack of getting a large number of infrastructure projects off the ground was still a concern.
"Government has taken several steps to contain CAD and I am confident the government will manage those number...But my concern remains lack of getting a large number of infrastructure projects off the ground..Which is an issue," Munjal said.
He pointed out that though Centre had cleared several large infrastructure projects yet there were still such projects where other clearances were required from state governments for implementation.
Stressing upon faster decision making process and its implementation for attracting investments into the country, Munjal said there was a need to create a framework to get decision implemented at faster pace.
"Uncertainty make people nervous and they hold back their investments...We need to create certainty of policy framework and ability for us not to take only decision but get it those implemented," he said.
"The worst seems to be behind us but level of confidence is still not risen enough," he added.
Speaking about the land and environment issues, Munjal said the high cost of land would end up projects involving land cost being a significant portion and lead to hike in cost.
"Land ownership, environment are credible and important issues...The way we have handled them they have ended up delaying implementing projects...Higher cost of land, will mean higher cost of products and services and for those where land cost is major portion than it will b a major issue for them," said Munjal, who is also Chairman of Hero Corporate Services Ltd.
High cost of lending was also turning out to be a stumbling block in attracting investment, he said.
"India has very high rates of interest in comparison to world where interest rates are very low...In some European countries, the lending rates are negative...Some of inhibitions in investment right now is the lack of availability of funds and high cost of funding," he said.