No need to 'panic' over Kroll's comments on Indian economy: BSE
Bengaluru: There was no need to 'panic' over risk management firm Kroll's observations about Indian economy as the country was a thought leader in corporate governance worldwide, BSE Managing Director and CEO Ashishkumar Chauhan has said.
"We should not be panicky just because one company (Kroll) has made some not-so-rosy observations on global investment situation in India. I don't see India being a laggard," he told PTI here.
He further said, "We are a thought leader in corporate governance and lauded by many regulators across the world."
Chauhan was in the city to attend the BSE "Stars of Star MF" event.
Kroll had yesterday said global investors were slowly adopting a "wait and watch" approach on India as they were scaling down on their aggression ahead of general elections next year amid global uncertainties.
The firm had also said poor governance, lack of transparency and fraud risk were among the factors affecting the sentiment of foreign investors towards India.
In this regard, Chauhan said Indian regulators have nipped in the bud frauds and economic offences by putting in place regulatory frameworks.
He also said Kroll is a risk management firm and not an investing company and hence a lot should not be read into their observations.
"Every investor has its own way to assess investments in a country. Kroll is not an investment company. It is a risk management company and clearly it will specify different risks, but that does not mean those risks do not exist for other countries. Hence a lot should not be read into their observations," he argued.
However, it does not mean wrongs such as Punjab National Bank fraud should be overlooked, Chauhan said, adding the track record of curbing such frauds have been well recognised world-over.
Kroll had raised concerns on financial reporting lapses such as the scenario of auditor pull-outs, Punjab National Bank fraud and issues surrounding Fortis Healthcare.
Chauhan also said India is one of the most honest countries in the world.
Asked when the country would achieve 10 per cent growth rate, Chauhan said India's demographics were similar to China's 1998 numbers as the neighbouring country grew at a phenomenal pace for next 20 years.
"India is pretty much at the cusp of achieving the growth rate faster than rest of the world because of the demographic pressure on consumption and production side, and also technology is going to play the role of a catalyst to expedite targets quickly," he added.
Chauhan said India would see a great amount of growth in next 30 to 40 years because of the structural changes the government has made which resulted in the county recording 7.8 per cent rate last quarter.
"Structural changes that I refer to are implementation of GST, Jana Dhan Yojana, Bankruptcy Code and simplification of governance by use of technology and automation, which the government has taken over the last three to four years," he said.
However, the pace of growth in 30 to 40 years would see ups and downs because of several factors including the expected US-China trade war and North Korea denuclearisaton issue, but they would not have a great impact, Chauhan said.
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