Indian economy in transition, slowdown won't stay forever: Vedanta

Stating that every economy faces headwinds and India was no exception, mining major Vedanta said the country's economy was going through a "transition".

The remarks come at a time when IMF and Asian Development Bank (ADB) have lowered India's growth forecast, citing global and domestic headwinds.

"I think every country, every economy faces headwinds. Ours is no exception. You are aware that in auto and other sectors, slowdown has happened in the past but at the same time you have also seen the package which has come from the finance ministry...you have to remember that our economy is going through a transition," Ajay Kapur, CEO, aluminium and power, Vedanta told reporters here on Tuesday.

The company, a leading primary metal producer, further said it was producing new products, especially for the auto sector which would be a game changer in the time to come.

When asked if it was a good idea to produce new products for the auto sector, which is going through a slowdown, he said, "slowdown is there today, but will it remain for all time to come? You are aware that in auto and other sectors slowdown has happened in the past."

The company said it was focusing a lot on value-added products, including billets and wire rods.

When asked if the company was planning to tap any new market, Kapur said, within India the company is concentrating more on value addition.

"We are also looking at the US. Considering to look at Europe, parts of Asia ...and then exploring new products which have not been developed so far," he added.

Vedanta -- leading producer of aluminium in India -- produced 1.95 million tonne of the metal in 2018-19. The company has two aluminium smelters. It operates a 2 MTPA alumina refinery in Lanjigarh, Odisha.

ADB on July 18 lowered the growth forecast for India from 7.2 to 7 per cent for the current fiscal, due to moderation in growth prospects for the advanced economies which could adversely affect tradable services.

On July 23, IMF projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 per cent for both years, saying its GDP will now grow respectively at the rate of 7 and 7.2 per cent reflecting a weaker-than expected outlook for domestic demand.