GST Rejig to Spur Investments in Private Sector: Anish Shah
Anish Shah, CEO and MD of Mahindra Group, stated that the adjustment in GST rates has resulted in a positive change in customer attitude and a rise in spending, at the CNBC-TV18 Global Leadership Summit.
"The recent GST cut was a huge one in changing the sentiment, and that change in sentiment is what we are seeing in translating to some of the numbers and that will result in greater investments across the private sector.
"And we do feel that a number of industries and companies are getting above the 80 percent capacity utilization mark, and that will be a trigger for greater investments," he stated.
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This is expected to encourage higher investments in the private sector to improve production capabilities. He added that the Mahindra Group is confident that the necessary foundations are established for the Indian economy.
He mentioned that the car manufacturer anticipates a growth of its sports utility vehicle lineup in the mid to high teens this year in the company's automotive sector due to increased demand.
"The Indian economy is firing on all cylinders, which allows us to fire on all cylinders, and therefore I am very bullish about growth'¦my forecast would be greater than 8 to 10 per cent for the next 20 years," Shah said.
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"From an industry standpoint, we see it possibly still in single digits, but our guidance for SUVs has been mid to high teens, which we did last year as well, contrary to the industry, and we expect that to continue this year," Shah stated.
Earlier in the week, Mahindra & Mahindra announced a 28 percent rise in its consolidated net profit to Rs 3,673 crore for the September quarter compared to the same period last year.
"From an industry standpoint, we see it possibly still in single digits, but our guidance for SUVs has been mid to high teens, which we did last year as well, contrary to the industry, and we expect that to continue this year," Shah stated.
"Over the last four years, we have quadrupled capacity for our auto business, and we're still putting in more capacity. We've added 60 per cent capacity to our tractor business, and we are running out of capacity, and therefore adding more there as well," he added.
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Earlier this week, Mahindra & Mahindra reported a 28 per cent year-on-year increase in its consolidated profit after tax to Rs 3,673 crore for the September quarter.