The economy is rapidly normalising towards pre-pandemic activity levels even as uncertainty exists about coronavirus mutations and repeated infection waves, Aditya birla Group chairman Kumar Mangalam Birla said on Wednesday.
“Uncertainty about virus mutations and repeated infection waves has not gone away. Yet, one gets a strong sense that there are more silver linings to the economic scenario today than at most points during the pandemic,” he said at the annual general meeting of group firm UltraTech. “Economic indicators show that the Indian economy is also rapidly normalising towards pre-pandemic activity levels.”
In FY22, the economy is projected to grow at a little below 10 per cent. Vaccination is picking up pace, which would improve India’s resilience against a potential third wave, Birla said.
According to him, the fiscal stance clearly seems to be poised for an acceleration of government capex in the coming years, especially in relation to the National Infrastructure Pipeline projects. Alongside, there are very strong signals of a pick-up in the private sector capex cycle, driven by companies like UltraTech, he said.
Birla said the three factors of cyclical upswing, conducive policy impulses and an improving global backdrop are likely to align themselves to position India for a virtuous cycle of growth and investments in the medium-term. “In the interim, of course, the policymakers and companies will need to remain on guard with respect to the pandemic-related uncertainties,” he said.
UltraTech has announced growth plans of 19.8 million tonnes with an investment of over Rs 6,500 crore, he said. The additional capacity will be created in the fast-growing markets of the east, central, and northern regions of the country. Commercial production from these capacities is expected to go on stream in a phased manner during FY22 and FY23. These expansions, once commissioned, would further strengthen the company’s market share and financial performance, Birla added.