Ratan Tata firm on Rs 1-lakh car's 2008 launch

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Besides deals, politics is also on Ratan Tata's mind. Tata said that an early election will slow down the economy. CNBC-TV18 extracts the essence of Ratan Tata's views in an interview with Karan Thapar.

 

Earlier this week, corporate leaders said that the industry is used to the volatility of Indian democracy and that economics has been decoupled from politics.

 

But speaking to Karan Thapar , in Devil's Advocate, Tata said that if this government is out of office prematurely, it would be damaging for the economy.

 

" It will cause the momentum of growth, which we enjoyed, to pause if not reverse," said Ratan Tata, Chairman, Tata Sons .

 

He admits that despite the Prime Minister's enthusiasm on reforms, he has not delivered on them, because the numbers do not stack up in the government's favour.

 

"The Prime Minister has seriously and genuinely wanted to see reforms take place," said Tata.

 

Tata believes the unintended consequence of the nuclear deal not going through would be rejoicing in the neighbourhood. He thinks those that want the government to dump the deal have misunderstood it.

 

"The only people who will be happy probably would be Pakistan and China.The benefits that the civil nuclear deal will bring to the country will be enormous," stated Tata.

 

Tata said he decided to stick on with the small car project in Singur, in West Bengal, despite violent protests because Chief Minister Buddhadeb Bhattacharya stuck his neck out.

 

"A lesser person would have succumbed to political pressure," commented Tata.

 

And he yearns for the days of single party rule, or strong coalitions, so that in India, there would be a serious debate on issues, not opposition for the sake of opposition.

 

Excerpts of CNBC-TV18's exclusive interview with Ratan Tata: