There is definitely policy uncertainty: Kumar Mangalam Birla

Birla demanded that government create a more enabling environment to spur growth and boost investments

The industry is within its rights to speak about policy uncertainty, Aditya Birla group Chairman Kumar Mangalam Birla said today while demanding that government create a more enabling environment to spur growth and boost investments.

"There is policy uncertainty. There is no denying the fact and the Indian industry is well within its rights to speak about that and the industry has correctly pointed out," Birla said at an interactive session organised by the Calcutta Chamber of Commerce here.

Birla, who inherited the mantle after the untimely demise of his father Aditya Birla in 1995 at the age of 28, said that India still needed to create an enabling environment for corporate entities to set up projects hassle-free.

Drawing an example, Birla said that his experience in Brazil was exemplary as his group has been able to commission a greenfield project within a record time of two years.

"The government should create an enabling environment. It is not a case of 'not India vs outside India'. We are also investing in India. The government should give a free hand," Birla said.

"However, I still feel that all is not lost. I am optimistic about the future," Birla said.

Speaking about the recent discovery of shale gas in the US, Birla said: "It is truly an inflexion point for the country."

Energy prices would come down in the US because of this, Birla said.

"Manufacturing activity there will become more cost effective as compared to India. We will be happy to do some greenfield project there when a good opportunity comes," he said.

"There is no specific sector which we have identified now," Birla said in reply to a query.

At present, the group's USD 4 billion activity in US has been spurred by acquisitions.

Birla also said that coalition politics was not bad politics, but it would have to be accompanied by good governance.

The group has interests in cement, aluminium, fertilisers, textiles, telecom, retail and financial services.