The Hinduja Group has called for immediate steps to kick-start growth of the Indian economy, including assuring global investors against any retrospective application of laws.
Gopichand and Srichand Hinduja, co-chairmen of the london-based Hinduja Group, said they were keen to play a “constructive role” in the Indian economy’s revival. In a statement here, they said steps like clearing large investment projects were also needed to boost growth. “The state of the economy in any country depends on fundamentals, management and perceptions. The fundamentals of the India economy remain strong, the management could perhaps have been better and perceptions have become very negative, more than is warranted,” the statement said.
“Once a negative sentiment grows, it is very difficult to reverse it as negativity feeds upon itself,” it warned. Referring to Finance Minister P Chidambaram’s efforts to assuage investors following the fall in the value of the rupee, the group said his remarks were “reassuring”. “The statement by the Indian Finance Minister P Chidambaram on Thursday was timely and welcome. It was clearly reassuring because it provided facts, whereas earlier, speculation, especially in the currency market, was occurring without knowledge of the realities,” the statement said.