Investor confidence is at 'historic high': Infosys co-founder Narayana Murthy amid economic slowdown

While the Indian economy has been skidding to a historic low, presenting a serious challenge to the Narendra Modi-led Bharatiya Janata Party (BJP) government, Infosys co-founder NR Narayana Murthy on Thursday claimed something contradictory to the ongoing slowdown.

Addressing a gathering in Gorakhpur, Murthy said that India has become the software development centre all over the world with the country's economy growing at 6 to 7 per cent this year only. "Our foreign exchange reserve has crossed 400 billion-dollar already as investors' confidence is at a historic high," he added.

Infosys co-founder NR Narayana Murthy in Gorakhpur: Our economy is growing at 6 to 7 per cent this year. India has become the software development centre of the world. Our foreign exchange reserve has crossed 400 billion dollar. Investor confidence is at a historic high. (22.08) pic.twitter.com/jglAGxwRI4

— ANI UP (@ANINewsUP) August 23, 2019

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On job creation, the MSP founder said, "Our government has to become more citizen friendly and remove obstacles to entrepreneurs to create larger and larger number of jobs. Our economic policies have to be less populist and more based on expertise. We have to shun jingoism".

"While it's easy to drape ourselves in our national flag and shout 'Mera Bharat Mahaan' or 'Jai Ho', it is difficult to practice values. We have to identify ourselves as Indians first and rise above states, religion and caste," he went on to claim further.

India's economy is showing signs of slowdown, with hi-frequency indicators like industrial output posting subdued growth and automobile sales touching historical lows. In January-March quarter, the growth rate slowed to five-year low of 5.8 per cent, due to poor performance in agriculture and manufacturing sectors. The official data also stated that India's unemployment rate rises to 45-year high of 6.1 per cent in 2017-18.

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Meanwhile, a Nomura report suggests that the economic growth is set to slow further in the April-June quarter of this year to 5.7 per cent amid contraction in consumption, weak investments and an under-performing service sector. The Central Statistics Office (CSO) will come out with the GDP figures for the first quarter (April-June) on August 30.

At present, the automobile sector is facing its worst crisis in two decades and reports suggest thousands of job losses in the auto and ancillary industry. In the real estate sector, the number of unsold homes has increased, while fast-moving consumer goods companies have reported a decline in volume growth in the first quarter.