Budget 2022: India’s Biggest Private Investor Is Bullish On Digital Currency; Is India Copying China Model?
Rakesh Jhunjhunwala who is also known as the “Big Bull” in the Indian stock market, is the most successful stock market investor in India. And when he gives his perspective on anything related to economy and investment, it carries a lot of weight.
And this time he has expressed his strong views on the economic situation of the country.
The Big Bull is bullish on India as well
After the announcement of the Union Budget, Rakesh Jhunjhunwala spoke to the media to convey his take on the future of the Indian economy. He remains bullish on India as he feels tax collections are going through the roof and the country is on the verge of a big change
“I can bet on that net tax revenue in the current year is Rs 3-4 lakh crore higher than budget expectations for the rest of the financial year 2021-22. Hence, the fiscal deficit will be 1-1.5 percent lower than budget estimates. This clearly indicates that next year’s collection will be higher than Rs 4 lakh crore, so this is ultra-conservative estimates of tax collections,” he said in the interview.
In the current fiscal, the fiscal deficit is projected at 6.9 percent of GDP and 6.4 percent for FY23. India is expected to grow 9.2 percent in the current fiscal, and targets capex of Rs 7.5 lakh crore for FY23, up 35 percent compared to the previous year.
Jhunjhunwala, who is bullish on India as usual, believes the market will do well. “We are missing the woods for the trees. The government’s focus on tax rules change is coming to the fore now. They are looking at 8-8.5 percent GDP growth; it will be 8 percent and will go to 10 percent,” he explained further.
But not so bullish on the Startup world
Even though Rakesh Jhunjhunwala is bullish on India, he does not seem to share a similar enthusiasm for startups as he sought to distance himself from the current excitement surrounding young tech companies.
“I don’t want to go to the startups’ party as the hangover is only two days. I think in the case of the cryptocurrency space, the government wants RBI to promote cryptocurrencies like what China is doing,” said Jhunjhunwala.
He also said, “The world wants to invest in India. India is a fair and well-regulated tax regime, having ease of doing business. China+1 factor is yet to play in a big way.” Hence, he feels private capex is going to exceed government expenditure.