Anant Goenka, President of Ficci and Vice-Chairman of RPG Group, believes that economic growth continues to be supported, especially after oil prices have decreased. He told TOI that trade agreements are a positive factor, and industries should now leverage this opportunity.
Corporate Sector Prospects
In his assessment, overall demand remains strong, and growth is maintaining a good trajectory. Despite the impact of inflation, the positive momentum observed after the implementation of GST 2.0 continues, showing an increase of 3-4% compared to previous baselines. Although there is an expected impact on margins, it will be uneven. Sectors that have shown good momentum include the automotive industry, the banking sector, and telecommunications, while IT remains under pressure.
Manufacturing and Investment Challenges
The manufacturing sector is experiencing margin stress, which may extend into the second quarter due to inventory issues. Regarding uncertainty related to US tariffs, Anant Goenka noted that while Section 301 tariffs can reach 10-12%, these are important relationships, and they are cooperating closely. He emphasized that the final stage of discussions is underway, and competitive advantage is key.
Trade Agreements and Potential
The entry into force of the Free Trade Agreement between the UK and India on Wednesday opened new opportunities, and other similar deals are planned. Goenka stated that the potential is very large because many B2B partnerships have been established, and intensity will increase as these agreements are implemented. He added that the industry must focus on building relationships and improving quality to turn these agreements into tangible actions. He noted that the share of UK imports in the country is small, creating huge opportunities in various sectors such as textiles and footwear.
Investment and Market Threats
Regarding government concerns about increased production capacity, he reported that private capital expenditure last year was around 6 lakh crore rupees, and investments are continuing. He also mentioned that in his own company, plans for 2028-2029 are already being executed because demand exceeds supply, and the company plans significantly more capital expenditure than initially projected. Finally, concerning concerns about dumping from China, he acknowledged the existence of excess capacity, particularly in China, and the observed rise in dumping, noting that DGTR has been able to establish injury in some sectors, but many recommendations were not adopted or rejected.
