Terming concerns over governance-deficit and tight liquidity in the country as "highly-exaggerated", a leading banker today said India is well-poised to achieve a 8-9% economic growth per annum over the next few years.
"Some say there is a governance-deficit in India. I, think it is too strong a word. There have been some lapses but on the whole, things have been good. To paint the whole nation as suffering from a governance-deficit, is in my opinion, too harsh," HDFC Bank Managing Director Aditya Puri told PTI here.
Similarly, though liquidity is tight, the fears expressed are "over exaggerated," he said, adding "there has been no shortage (of funds) to fuel growth."
Puri said that governance issues have been recognised and the authorities are committed to it.
"We have a landmark legislation--the Right to Information Act--and this plus e-governance initiatives will definitely enhance transparency. We need improvement but on the whole, I feel things are functioning very well."
According to him, the Reserve Bank has indulged in a calibrated increase in its rates to combat inflation. "There has been no runaway increase in interest rates--instead there has been a calibrated increase.
"May be over the next one-year, there will be a 100 basis points increase--probably between 50-75 basis points--but it will not be a major concern for growth," the HDFC Bank chief said.
On inflation, he said that it was not a matter of concern for India alone but for all emerging markets (EMs) as well. "It is a concern, yes, but it is being addressed," he said.
