Praising the Indian government for its brave decision to allow Foreign Direct Investment (FDI) in aviation and retail, Adi Godrej, President, Confederation of Indian Industry (CII), and Chairman of the Godrej Group said that the decision would help in taking the economic growth forward and make growth inclusive to reach all sections of the society. Godrej was speaking on the sidelines of the CII organised three-day International Hospitality Fair in New Delhi today.
“I compliment the government for the reform path. And I hope that all the political parties realise that without economic growth it will be difficult to take the country forward in ensuring that there is inclusive growth,” he said.
When asked about the benefits of FDI to domestic airline sector, Godrej said that capital shortage was a major issue for Indian’s domestic carriers, and the foreign capital flow will help them come out of the same. “The foreign carriers will not only bring capital, but also bring in knowledge, managerial capabilities, and best practices,” he added. He opined that competition will bring in efficiency which will ultimately drive growth of the airline industry.
To a specific query on whether there will be enough takers for the opportunities in India given the volatile global financial scenario, Godrej said that the global economy is improving and recent announcements by Federal Reserve of the USA, and European Bank are indicators of positive sentiments. “India will definitely benefit from the improving global financial scenario. We saw the positive impact of the government decision on the stock market on last Friday; I hope that it will continue,” Godrej added.