“We do have certain uncertainty. But I think if you see this quarter’s performance and look at the long-term growth, and with all the projections coming out from various agencies, it’s clear that India will continue to grow north of 6.5 per cent to 7 per cent on a sustainable basis over a period of time,” Rara told ANI.
Rara was speaking on the sidelines of an industry discussion on Credible Growth: Capital, Entrepreneurship and Financial Reporting, which focused on strengthening investor confidence through sound corporate governance and transparent financial reporting.
“We may have short hiccups or periods where growth may not be at that level because of external factors. But that’s how long-term growth works. You will have ups and downs during that time,” he added.
He said the event deliberated on what constitutes credible growth from the perspective of investors and the importance of governance frameworks in attracting long-term capital.
“Well, we talked about what is credible growth. Since it was more of the investor community, they expect that the enterprises they invest in should have a robust governance and financial reporting framework. That’s what we discussed today,” he said.On financial inclusion, Rara said the government has taken several steps to simplify access to the financial system through electronic Know Your Customer (eKYC), adding that efforts are now being made to extend the benefits of digital KYC beyond residents in India.
“The government representative was talking about how they are trying to make it easier for people to get into the financial system. One of the steps is eKYC or digital KYC and the measures that the government has taken,” he said.
Today, that works seamlessly for Indians in India. What the government is also looking for is what steps can be taken to make that easier for NRIs as well as foreign nationals to do their digital KYC, he said.
Responding to a question on reforms sought by industry, Rara said businesses are looking for a regulatory environment that encourages investment while reducing the compliance burden on enterprises.
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“Compliance requirements are onerous. Whether you’re a small business or a large business, what they’re looking for is how the government can make sure compliance requirements are lower, and also that the government builds an enabling environment where industry can invest and thrive,” he said.
Rara said that while global developments may create short-term uncertainty, India’s long-term economic fundamentals remain resilient, with various projections pointing to sustainable growth over time. He added that temporary fluctuations are a normal part of any long-term growth cycle and should be viewed in that context.