Concerns over governance deficit, inflation exaggerated: Puri

Posted By: Pti
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Mumbai, Feb 8 (PTI) Terming concerns expressed by somequarters over governance-deficit, tight liquidity andinflation in the country as "alarmist and highly-exaggerated",a leading banker today said that India is well-poised toachieve 8-9 per cent economic growth per annum over the nextfew years.

"Some say there is a governance-deficit in India--Ithink it is too strong a word. There have been some lapses buton the whole, things have been good. To paint the whole nationas suffering from a governance-deficit, is, in my opinion, tooharsh," Managing Director of HDFC Bank, Aditya Puri, told PTIhere.

Similarly, though liquidity is tight, the fearsexpressed are "over exaggerated," he said, adding "there hasbeen no shortage (of funds) to fuel growth."

Puri said that governance issues have been recognisedand the authorities are committed to it.

"We have a landmark legislation--the Right toInformation Act--and this plus e-governance initiatives willdefinitely enhance transparency. We need improvement but onthe whole, I feel things are functioning very well."

According to him, the Reserve Bank has indulged in acalibrated increase in its rates to combat inflation. "Therehas been no runaway increase in interest rates--instead therehas been a calibrated increase. May be over the next one-year,there will be a 100 basis points increase--probably between50-75 basis points--but it will not be a major concern forgrowth," the HDFC Bank chief said.

On inflation, he said that it was not a matter ofconcern for India alone but for all emerging markets (EMs) aswell. "It is a concern, yes, but it is being addressed," hesaid. .

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