Brokerage house Morgan Stanley recently met up with metal companies, consultants and government bodies to check out the demand environment, ground level changes, and evolution of the regulatory scenario post elections.
Anil Swarup, Additional Secretary, Cabinet Committee on Investments said the emphasis is now on improving the processes.
MS Unnikrishnan feels the new government should bring policy-conducive environment to ease land acquisition. There‘s a need to cut down on the number of clearances for projects and interest rates should be lowered to prop up the investment climate.
India`s economy began a feeble recovery in the July-September period, expanding 4.8 percent - a touch faster than the 4.7 percent growth in the previous three months. The gross domestic product (GDP) data for December quarter is due on February 28.
"Economic growth has in fact declined much more steeply than what is warranted by the decline in investment. This might be because projects have not been completed in time or complementary investments have not been forthcoming," Prime Minister's Economic Advisory Council chairman C Rangarajan said here.
Crisil today said revenue growth has bottomed out, but margin growth may take more time. "Revenues, after declining for nine successive quarters, rebounded in the September quarter.
Because of the negative economic environment, it will be difficult for banks to fund the large ticket infrastructure projects.
Agriculture growth should be 4-5 percent in the current fiscal, said Rangarajan, Chairman of the Prime Minister's Economic Advisory Council (PMEAC). The farm sector growth was 1.7 percent last year.
The Cabinet Committee on Investments (CCI), headed by Prime Minister Manmohan Singh, is likely to take up the environment and forest clearance issues related to nearly Rs 50,000 crore of power projects on Monday.
The newly formed Cabinet Committee on Investments (CCI) will have powers to review the procedure followed by ministries in granting or refusing clearances for infra and manufacturing sector projects costing more than Rs 1,000 crore.