All right, we have Nadir Godrej with us here this cold morning. I'm glad that we're twinning at least with the tie and the coat, and the red tie is quite in line with what Trump wears. So that's the big highlight this year you think for Davos for you, Mr. Godrej? And there's lots of things happening in the world, and I'm hoping that at Davos at least we can settle some of them.
Well, that would be great if that really happens. But I think this is a great time to also speak about India's place in the world, and I see massive representation. Of course, you are a Davos veteran, a white badge holder, but this time round the number of Indian companies that have come in, that is also a sign of India's growing resonance, isn't it?
Absolutely. India's presence in Davos is really felt, and so many state pavilions as well as the India pavilion, and this is a very good sign. And there are lots of established companies who have been coming to Davos for years, as well as many young companies who have come now, startups and recently formed companies in high-tech as well, and not just your traditional industries, which is a very good sign for India and India's place in the world.
The theme this year is a spirit of dialogue, and I'm sure you have a lot of interviews, conversations, meetings lined up on the sidelines as well. Of what's happening, to your mind, what's the biggest talking point right now?
I think there is a lot of polarization in the world, and dialogue is absolutely important. We need to find more and more middle ground, which can only be done through dialogue.
From the Indian perspective, you know, we have the budget coming up. We're right in the middle of the quarterly results, and what corporate India is showing perhaps in this quarter is resilience. Do you see that trend continuing, especially from your sector and your perspective?
Yes, I see a lot of resilience. We have had a lot of geopolitical setbacks with high tariffs, etc. And obviously the tariffs have caused pain to certain companies, but they don't seem to have affected the Indian economy as a whole. And the recent GST reforms, which were troublesome in the very short run because of the changeover, but now the benefits of the GST reforms are kicking in. And I'm really looking forward to other tax reforms in the budget that will help the economy, and I'm also looking forward to more government investment in the economy. We shouldn't be worried about the budget deficit if it is calculated in a way so as to grow the economy. We shouldn't be worried about tax cuts because many tax cuts can actually raise the revenue. We should look for tax cuts that help us raise revenue, and if we have a budget deficit but the economy grows very fast, we can ensure that debt to GDP falls steadily.
What are some of the reforms that you're hoping for? You mentioned that, you know, there should be more reforms coming in the budget. What are some of these tax reforms?
I'm not going to say anything specific on specific kind of taxes, but the kind of reforms they did in the GST with lower taxes that actually increase GST revenue and help to grow the economy, I'm looking for opportunities like that. I'm also looking for reforms towards ease of business. A lot has been done for ease of business, and the only reason our economy is growing is because of this, but much more can be done and should be done.
In terms of the tailwind that GST reforms gave, especially consumer-facing companies like yours, do you see them sustaining after the initial burst? Of course, it had some issues on the balance sheet because of the inventory, etc., and maybe that's now behind us.
The short term is behind us. But in terms of the actual boost to consumption, is that now a one-time flow or do you see a sustaining impact? I think there will be a sustaining impact, and it won't be just one time. And we will probably, we may not get back to the heady growth of earlier years, but we are looking forward to seeing good growth, double-digit growth in the consumer products industry.
