TheNFAPost Podcast

Big Bull Rakesh Jhunjhunwala compared the decisions taken under 2021-22 Budget to the 1991 New Economic Policy, which aims to create a more competitive environment in the economy as a means to improving the productivity and efficiency of the system. 

“That’s what India needs – a transparent and growth-oriented economy, propelled by privatization. We came out of the shackles of the bullshit socialism in 1991 and this is the second moment. I think this budget has conveyed a political message that the steps taken by the government under this budget are no lesser important than what happened in 1991,” he said.

The New Economic Policy was launched in 1991 under the leadership of P V Narasimha Rao which had opened the door of the Indian economy for global exposure for the first time. 

The Rao government had reduced the import duties, opened a reserved sector for the private players, devalued the Indian currency to increase the export.

Jhunjunwala said the Budget is growth-oriented which will make India reach double-digit growth and in the next 25 years pip China. “The Budget has conveyed much more than what we are understanding. We have a realistic Budget for a resurgent and rejuvenated India. Budget 2021 indicates that the Indian government will be bold. India will overtake China in the next 25 years,” he said.

Jhunjhunwala said Prime Minister Narendra Modi believes that the government has no business to be in business and given a clear indication that his government would be bold and take steps required to propel growth in the country. 

“And this has been done with a base laid down in terms of RERA, Bankruptcy Law, Jan Dhan, change in labor laws, change in Indian farm laws. I think this budget is conveying that it is growth-oriented and is laying the ground for India to get to double-digit growth,” he said.

Speaking to CNBC TV 18, Jhunjhunwala exuded confidence that the FY22 fiscal deficit will be between 6 percent and 6.5 percent and the tax collections will be much better.

He said the biggest would come from pension and sovereign fund money and also from infrastructure. “When we encash the power grids, the roads – I think next year the toll collection would be Rs 50,000 crore. This will give us the power to build will give us more tolls. 

Now, we will be modernizing the railways. We have just started. I say to every Indian to believe in India. You don’t know what is coming ahead of you,” he said.

“India won’t be able to absorb all the capital expected to come,” he said.

Talking about the market, Jhunjhunwala said the recent correction was a swift one, typical of one in a bull market.

“I am bullish on the market. Believe in India. The market is giving chances, grab it,” he said.

On divestment, he said the government is withdrawing from the business which is positive. “The capital expansion cycle has just started. This quarter will see 1 percent growth. Next year, the growth will be sharply higher,” he said.

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