Indian Growth Rate is Sustainable : Nandan Nilekani

Reuters Correspondent Dan Sloan caught up with Nandan Nilekani, MD & CEO, Infosys - at the IMF venue and discussed on host of issues.

DS: How have Indian Entrepreneurs and industry developed post the crisis?

NN: Well, I don't think Indian business was affected by the crisis. But, we have seen a sea-change in the business. In the 80s, we had a pro-business environment. In the 90s, it was pro-competition, thanks to the liberalization, and this decade, it is about pro-globalisation. Indian firms are becoming truly global players. So, we can witness tremendous private sector activity in India.

DS: Why do you think that business in India was not affected by the crisis?

NN: The reason being that India, then was not that integrated to the global economy and a large part of the crisis was felt in East-Asia, whereas in India, it was just a few years after liberalisation. Hence, we did not have to go through the crisis.

DS: Indian and Chinese growth is leading the world. How do you access the Indian growth rate and the overall expansion within Asia?

NN: Indian growth rate is quite sustainable. India is growing at 7-8%. It is growing at high capital productivity and because of the demographics, the savings will increase, which will contribute more capital to growth. The private sector is doing well. Infrastructure is improving. Educational and health sectors are improving slowly. Hence, I believe it is a positive long-term thing and not a bubble. It is a sustainable plan that can carry on for many years.

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