‘Not very sure how GDP numbers are coming..’ Asian Paints CEO Amit Syngle says it does not ‘correlate with core sectors'

livemint.com:

“Not very sure how GDP numbers are coming," Syngle said pointing out that that the numbers being talked about “do not seem to correlate to core sectors". He was answering investor questions on May 9. “You are correct that the GDP correlation has really gone for a toss, in the current year.

I also feel that today, I am not very sure as to how the GDP numbers are coming. You guys are better wizards in terms of really understanding in terms of how those numbers are coming and so on and so forth," Syngle told an investor. The GDP numbers being talked about do not seem to correlate to core sectors such as steel and cement, Syngle said .

"And sometimes you feel that there is such a variation happening across industries. How does that GDP really correlate to the actual GDP what we are kind of talking of. So, even if you look at the core sectors, whether it is steel, cement, so on and so forth, no where it is correlating with the kind of possibly overall GDP growth in terms of what we are kind of talking of," he said.

The Asian Paints top executive said there is need to "normalise" the GDP growth to find what it means for sectors "realistically". "I feel that we need to look at from a nominalisation of this GDP growth to find out more realistically, if we are talking of a 7% growth; whether that 7% really translates to a real-time of 5% or 4% GDP for a certain sector, and therefore look at extrapolating data in terms of seeing how the correlation works out." He said Asian Paints is working on "finding out what the real GDP" is. "So currently, as you rightly said, even we are not kind of really correlating to the GDP in terms of looking at it ...