Will never see growth below 6% in India: Anand Mahindra

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Will never see growth below 6% in India: Anand Mahindra

Anand Mahindra, vice chairman and managing director of Mahindra & Mahindra is confident that India will never see growth below the 6% mark

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Anand Mahindra, vice chairman and managing director of Mahindra & Mahindra is confident that India will never see growth below the 6% mark.

"We have reached that level of maturity. So the problem is not about an economy that is about to go off the cliff or is out of control. Our problem in India is how to move from threshold levels of performance to outperformance and by outperformance I mean 8% plus growth rate. That I think is a challenge for both government and industry in 2012," he says.

"It's been a difficult year for everybody. Not just for the government, but for the industry and global economy and as some people have said, not too many people are unhappy about the closure of 2011. We are all looking forward to a better year. I believe that at a threshold level the Indian economy and the government functions extremely well. There are very strong institutions, which keep our economy on track, such as RBI, which has done an outstanding job. Let us all admit on keeping inflation under check."

As far as the auto sector is concerned, Mahindra feels, the year is going to be very competitive one.

"Raw material prices and cost pressures, particularly input cost pressures, commodity price pressures were significant features of 2011. Most automotive companies saw their margins shrink. The challenge now is that how does one grow, but at the same time, get margins back to healthier levels. So cost containment, cost control, value engineering is going to be a theme that will run throughout the most automotive companies. Every company will look for product winners to escape the gravity of these forces. When you have winners, cars which people want to come and buy then you have some headroom in order to pass on price increases."