GST Rejig Spurs Investments: Mahindra Group CEO

New Delhi, Nov 7 (PTI) The GST rate rejig has led to improved customer sentiment and an increase in consumption, which would lead to enhanced investments in the private sector to spruce up production capacities, Mahindra Group CEO and MD Anish Shah said on Friday.

Speaking at the CNBC-TV18 Global Leadership Summit, Shah stated that the Indian economy is firing on all cylinders and has the potential to grow by 8-10 per cent over the next 20 years.

"The recent GST cut was a huge one in changing the sentiment, and that change in sentiment is what we are seeing in translating to some of the numbers and that will result in greater investments across the private sector. “And we do feel that a number of industries and companies are getting above the 80 per cent capacity utilisation mark, and that will be a trigger for greater investments," he stated.

The Mahindra Group believes that the fundamentals are in place for the Indian economy, he added.

"The Indian economy is firing on all cylinders, which allows us to fire on all cylinders, and therefore I am very bullish about growth'¦my forecast would be greater than 8 to 10 per cent for the next 20 years," Shah said.

On the company's automotive vertical, he noted that the automaker expects its sports utility vehicle portfolio to grow in mid to high teens this year as well amid enhanced demand.

"From an industry standpoint, we see it possibly still in single digits, but our guidance for SUVs has been mid to high teens, which we did last year as well, contrary to the industry, and we expect that to continue this year," Shah stated.

"Over the last four years, we have quadrupled capacity for our auto business, and we're still putting in more capacity. We've added 60 per cent capacity to our tractor business, and we are running out of capacity, and therefore adding more there as well," he added.

Earlier this week, Mahindra & Mahindra reported a 28 per cent year-on-year increase in its consolidated profit after tax to Rs 3,673 crore for the September quarter.