Global Uncertainties Affecting Private Capex; Industries Will Cheer US-India Deal, Rajiv Memani Says

Global uncertainties have cast a cloud in the last three to six months over private capital expenditure, according to newly-appointed Confederation of Indian Industry President Rajiv Memani in an exclusive interview to NDTV Profit.

"As things settle down, people will have a predictability. Hopefully, we are towards the end of it (global uncertainty)," said Memani.

From a business stand point, he said there is numerous uncertainty. "Business and uncertainty do not go well together. So, when uncertainty is high, it does impact ability to plan long-term investments. The general sense is to do planning for 60–70%. To do complete planning, businesses prefer to wait least for three and six months," Memani said.

There has been a flurry of free trade agreements between countries with which complements each other's long-term growth. Simultaneously, there are geopolitical disruptions that are happening, he said.

"India-US FTA is a strategically important. The Commerce Ministry has done a commendable job to understand every aspect related to it. Many industries had conversation with the ministry through CII. Clearly, industries and ministry wanted to understand what are opportunities and challenges to make the best possible trade deal," he said.

"There will not be all winners in this, there will not be all losers in this. As long as India is benefiting from this transaction, industries will be very happy because they will not be imposed with 26% tariff," he said.

Memani said his bullish view on India continues. "India's resilient story is obvious. There is a tremendous sense of optimism, especially in the way macroeconomic factors have panned out. Inflation, interest rates, strong corporate balance sheets, people are trying to see how they can leverage capital markets. They are actively raising capital and demerging, conducting disinvestment, acquisitions. Numerous activities are happening. Eventually, growth will happen," Memani said.