Stating that there is a slowdown of private sector investments, Aditya Birla Group Chairman Kumar Mangalam Birla said government needs to invest in infrastructure to set off "virtuous circle" of investment and economic growth.
"I think we have some issues to deal with. Clearly, there is slowing down of investment in the economy specially in the private sector and I think to kickstart that investment by the government, infrastructure is something that becomes critical," Birla said while speaking at the ET Global Business Summit here.
"I think that is (investment in infrastructure) one factor that will set off virtuous circle of investment and growth in the economy that all of us are looking for," he said.
On other issues which India faces at the moment, Birla said: "You have issues about ease of doing business where you need ample co-operation between states and the Centre. States are where the real action happens and we cannot have, in a federal structure like ours, where state is not in sync with the centre."
He said the way to go about that is to create as much of competitive environment where each state is vying with the other for the next dollar or rupee of investment.
Commenting on taxation, Birla said issues around it takes away the purpose of doing business.
He, however, said the advantages India have at this point in time far outweigh the problems.
"I think we have got great opportunity this time in the Budget. I think what government can do is put huge thrust in infrastructure and also many of us in this room would like lowering of corporate taxes and also simplification of tax processes and legal issues," Birla said.
Expressing similar views, Bharti Group Chairman Sunil Mittal said India Inc was hopeful that the much-awaited GST would be passed in the coming Budget session.
Citing positives of India, Birla said "not long ago there were people saying that you should knock off India from BRICS and replace India with Indonesia.
"We have come a long way. We are a spot of sunshine and really it is up to us what we want to do with this position of advantage that we find ourselves in," Birla said.
Expressing similar views, Kotak Mahindra Bank Executive Vice Chairman and Managing Director Uday Kotak said four main factors of low oil prices, huge capacities, low current account deficit and low inflation rate is favouring India in a global perspective on Friday.
"This is our time to really think as a perfect batting wicket and go out and play our strokes. At times I really feel that certain level of despondency is more from within than from lot of global players outside who from outside feel that India is such a wonderful place," he said.
Kotak said Indians need to get the "animal spirit" out to build the country.
"This is the best opportunity to build India," he said.