GDP can be raised to 9% through reforms: Adi Godrej

The country's GDP growth rate can go up to 9% from the present 7.5% if the government implements reforms such as Goods and Services Tax (GST), according to Godrej Group Chairman Adi Godrej.

"We could easily bring the GDP from 7.5% to 9% by enacting GST. The day we enact this, (GDP growth) rates will rise by 1.5 to 2%. Likewise, there are many other reforms that could have been implemented," Godrej told reporters on the sidelines of a function here.

Replying to a query, he said the ongoing anti-corruption movement and a slowdown in government and Parliament decision-making has affected business interests.

"I hope, our politicians will sit together and the government works out with the Opposition and implements these reforms. The new manufacturing policy should have been notified and FDI not just in modern retail only, other sectors also, telecom can be also expanded," he said.

He added that the rupee started appreciating soon after the Reserve Bank announced its policy.

Last week, the central bank imposed restrictions on forward trading in the local currency by FIIs and traders and also capped banks' exposure to the forex market.

"I think, we should have defended the rupee much better, both in terms of statements made and also physically," Godrej said.

On the proposed QIP plans of Godrej Properties, he said the company aims to raise Rs 750 crore, as it is growing fast and needs capital.

He said as per Sebi norms, the promoters' stake in the company has to be brought down to 75% from the present 83% by 2013.

"There are two ways to do it. Either the promoter can sell their share to someone or you can raise more capital in the company so that the promoter's stake comes down. We prefer to do the latter. Because the company is growing, we have time till the middle of 2013," Godrej explained.

According to him, the percentage stake dilution will depend on the company's valuation at the time of a stake sale.

Currently, Godrej properties' valuation is slightly less than Rs 5,000 crore.