Government needs to clarify policy uncertainty for growth: Keshub Mahindra

MUMBAI: The outgoing Chairman of Mahindra & Mahindra group Keshub Mahindra today said uncertainties over policies and 'vacillation on major reforms' are adding to the woes of the industry and the government need to clarify those to restore the growth path of the economy.

Addressing the shareholders of the company at the Annual General Meeting here, Mahindra said weak domestic macro- economic factors such as high inflation, large fiscal and current account deficits along with coalition politics continued to constrain policy actions which are critical to supporting growth.

"Uncertainties of our policies and our vacillation on major reforms together with the south west monsoon remaining weak adds to our woes!" he said.

Stating that any growth below 7 per cent cannot even begin to meet the country's social needs, Mahindra was of the opinion that the government needed to get its act together.

"I also expect that the government will move to clarify the uncertainties in many sections of our economy and to bring back focus on providing a platform for the growth of our economy which is critical for bettering the quality of the lives of our people," he said.

Mahindra also stressed on the need for general public and industry to assist and support the policies enunciated.

"...and ensure to the best of our ability that all political parties move with one objective of creating an environment in which the economic growth of our country continues," Mahindra said in his last address as the Chairman of the USD 15.4 billion group.

He was, however, optimistic despite a challenging outlook for future.

"...there is hope that in the latter part of the current year, one might see a change leading to growth and the containment of our revenue and fiscal deficits," Mahindra said.