Ican’s Singhvi Says India’s Leadership Vacuum Is Hurting Growth

Anil Singhvi, chairman at Ican Investment Advisors Pvt. in Mumbai, comments on India’s slowing growth rate. Asia’s third-largest economy expanded at the weakest pace in at least eight years last quarter.

Gross domestic product rose at a lower-than-expected 5.3 percent in the three months ended March from a year earlier, compared with 6.1 percent in the previous quarter, the Central Statistical Office said in a statement in New Delhi today. Singhvi spoke in a telephone interview.

On the fall in growth and leadership vacuum:

“We are close to a melt down. There is policy paralysis in the government. There is no coordination between the Reserve Bank of India and the finance ministry. The central bank has been saying that it cannot tackle inflation through it’s policies alone.

‘‘There is a leadership vacuum and unless day-to-day action is taken, we will reach a level of despondency. I have been saying that financial year 2012-13 will make 2011-12 look good.’’

On the Greek crisis and its impact on India:

‘‘The Indian government is in denial mode. The fall in India’s GDP growth has little to do with the situation in Greece. When there’s a fire in our own house, there’s no point in blaming neighbors.

‘‘Our prime minister has said that we are in a better situation than we were in 1991. We were bankrupt at the time.’’

On India’s rating:

‘‘If our current account deficit continues at current levels and the lack of reforms continues, it doesn’t take a genius to see we could see a cut in our ratings.

‘‘The consumption sector is the only one doing better than others. But if inflation continues, this story too will die down.’’

To contact the reporter on this story: Archana Chaudhary in New Delhi at achaudhary2@bloomberg.net

To contact the editor responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net