Govt under-estimated how bad the economy was: Mohandas Pai

Hyderabad: The NDA government under- estimated the problems in the economy it had inherited and is doing its best to bring it back on track, venture capitalist and former Infosys director T V Mohandas Pai said today.

He asked critics to give the government some time and said the benefits of its initiatives would bear fruit over the next couple of years.

Pai, former CFO and HR head of the Bengaluru-headquartered software major, said Prime Minister Narendra Modi has done whatever he could to deliver on his promises.

"Whatever he could do, he has done. Only thing is he and his government under-estimated how bad the economy was. The economy was going downhill (when the Modi government took over). All the NPAs were there. It's all hidden. They did not understand it. Most of it (his promises) he has done... All of the things he could do," Pai told PTI.

He said that while he believes Modi has lived up to the expectations of people, some would disagree as they say they have not seen benefits under the new dispensation.

"They (the critics) would see the benefits in the next one-and-a-half to two years. The economy was worse than what they thought," he explained.

Pai referred to improvement in the business environment in the country under the new government and listed out other positives as well.

"There is a positive movement in direction. Tax terrorism has come down. Company law administration is improving. There is a distinct improvement compared to 20 months ago. There is no corruption in Delhi (at the level of the Union government). No corruption in Delhi is a big thing," Pai, currently chairman of venture capital firm Aarin Capital and Manipal Education, added.

He also made a specific mention of speedy clearances and resolution of non-performing loans.

"Environmental approvals have gone smoothly. The government is not holding up anything. The Ministry of Company Affairs has done well. Rs 1 lakh crore refunds have been done. Road and power sector reforms have happened. We are seeing NPAs getting resolved," said Pai, formerly a member of the Kelkar panel on direct taxes reforms.

On 'Make in India', Pai said the programme would take time to work because "there is no investment (as of now)".