Noted economists the world over have been harping over the possibility of a double dip recession in the near future. However, the Chairman of Wipro, Azim Premji has a different point of view.

In his recent interview with CNBC-TV18, Premji said that there is a genuine sense of optimism floating among companies. Many of the business leaders have used the past 18 months to make their companies leaner and far more productive. Not just that, the focus has also been on building closer intimate partnership with customers. All this has contributed to the belief that the economic revival is for real. That does not mean that companies have once again gone on a capex binge. The idea has been to sweat assets and get more productivity out of them.

What needs to be noted according to Premji is that majority of businesses had downscaled in the last one and half year. So the capacity which they had built-up three years back is now enough to carry growth into this year. As a result, there is sufficient capacity that has removed the need to invest massively in capital assets for the time being. Premji is also optimistic on the Indian IT sector that he believes will now pick up. Overall, he seems to be more confident about the business environment. This certainly comes as a welcome relief after what various doomsayers have had to say in recent times.

source: equitymaster