ONE-ON-ONE ‘World isn’t going to wait for elections. We need to act today’

HSBC India chief Naina Lal Kidwai wears another hat — that of Ficci president. She has spent a major part of this year in the national Capital, making a case for reforms and a more business-friendly environment. Kidwai tells TOI that the government needs to push reforms immediately. Excerpts.  How is the rupee affecting business?  Quite significantly of every company that has ECB on its balance sheet. The borrowings were at low interest rates but for those that remained unhedged, the cost of servicing has gone up significantly. Banks are beginning to review with companies how repayments would look in this environment. The second impact is for every company that imports. If you are a net importer then there is a problem. All emerging markets have been hit — some by 8-10%, others like us by 15-18%. We can avail of the benefits in terms of improvement in the US and Europe, where we are exporters. The fears I have in mind are infrastructure, processes that enable our exporters to go out, interest rates which are high, domestic input cost and liquidity squeeze. Related to that is the enabling environment for industry — issues related to power supply, land acquisition etc.  So, are we in a position to  benefit from the depreciation?  India's competitiveness in the world lies in some sectors such as IT software and pharma. We need to do it across the board. We were never an easy destination to work and we have possibly become tougher. But, at the end of the day Indian business thrived even with that. India will always remain a large domestic market and the rural market will remain a good driver of growth. The big areas that need to be addressed are infrastructure projects that are stuck, GST and skills. The Cabinet Committee on Investment is helping revive a lot of projects.  Do we have enough time before the elections to address the concerns?  There are ministers who want to see solutions. If they set the tone, things can work out. The worry is that there is such a high decibel noise around corruption that whenever there is something that goes ahead, there is always someone who is criticizing it. If you reach a situation where there is no one brave enough to find a solution then there is a problem.  Has the Opposition stalled some reforms?  GST is a classic case. There are things beyond FDI in the Insurance Bill but the progress of bills in Parliament is abysmal. To me it's a breakdown of the political system. I don't know if the ruling party has reached out to the political system or is there opposition for the sake of opposition. It's important that the political class should get together. The world is not going to wait for elections, which is eight or nine months away. We need to act today.  Are foreign investors still interested in India? What are your clients saying after the FDI reforms?  Retail FDI is quite a tough one, nor is the political system united. In telecom, along with FDI other things need to be done. No company can ignore India. It's going to be a timing issue — whether they put in the money now or wait till the elections. Naina Lal Kidwai PRESIDENT, FICCI