Godrej pitches for Big Bang reforms, GST cut alone will not drive growth

Mumbai, Sep 9 (PTI) Industrialist Jamshyd Godrej on Tuesday said that Big Bang reforms are needed as GST rate cut alone will not drive private investments.

Godrej, who heads the Rs 16,000-crore Godrej Enterprises Group with interests in appliances, furniture and locks, said private capital expenditure can only increase when India Inc sees growth in demand.

A "significant deregulation" in every area, akin to the 1991 Big Bang reforms, is essential for upping the interest of corporates, he added.

"Nobody's going to invest unless the demand is clear, right? Even the Finance Minister has said now you (companies) should invest because the direction is clear.

"All they've done is rationalise GST, nothing much more than that. I think what we need is growth imperative. Growth imperative is not only GST (cuts)," Godrej said replying to a specific question on concerns around sagging private capex and if GST cuts will be of help.

"We need plenty more of Big Bang reforms constantly. That only will ensure more capex and investment," Godrej said.

Refraining from mentioning the exact policy changes he desires, Godrej made it clear that "these little sops" are not growth drivers.

The group's furniture arm Godrej Interio's executive vice president Swapneel Nagarkar said the group is largely insulated from the worries around urban demand because of its concentration in the premium business.

The GST Council last week decided on a slew of measures, including making insurance buying GST-free and slashed the taxation on various items, with an aim to boost consumption demand ahead of the festive season. PTI AA ANU