'India needs more investments'

The Centre's decision to allow FDI in multi-brand retail would "revive the sentiment" and bring out the "animal spirits", ITC Group Chairman Y C Deveshwar said today.

"Seeing is believing and you can see it. I think we need more investments. Firstly, I think we need to reverse the sentiment that is at the moment in low gear", Deveshwar told reporters, at the sidelines of the inauguration of the group's new ultra-luxury property, ITC Grand Chola, here.

"Hopefully, this (initiative) will revive the sentiment and bring out the animal spirits. Basically, no one single action can do this", he said.

He said the economy grows on sentiment. "If it(allowing FDI in multi-brand retail) helps to revive the sentiment, then it will be a great thing for the Indian economy".

The Government yesterday allowed 51 per cent foreign investment in multi-brand retail but left it to the states to permit global retailers to open stores.

On the Rs 5 per litre hike in Diesel, Deveshwar termed it as a "macro-economic management" and observed that "one cannot have a growing deficit since it leads to inflation.

"I am not an economist. It is a matter of macro-economic management. Obviously, if people do not pay for their commodity, then people will consume it more. So, whatever you import, if its expensive and if the prices are high, then you should let the price pass through, so that people are careful", he said.

Asked about their future plans, Deveshwar did not rule out entering several sectors in which his company does not have a presence.

"Sooner or later, we may be in coffee, milk based products, We can be in health drinks. But that will be in sequence. We will be there, but not tomorrow. It has to take its sequence," he said.

Deveshwar and top company officials were here to inaugurate their Rs 1,200 crore ultra-luxury property – the ITC Grand Chola, spread across a whopping 1.5 million square foot, comprising 600 rooms. Chief Minister J Jayalalithaa inagurated the hotel at a function held today.

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