Balancing Budget 2013-14 is going to be challenging: Sudhakar Ramasubramanian
A thriving capital market is critical for balancing the twin deficit problems, says Sudhakar Ramasubramanian, CEO, Aditya Birla Money. In an interview with Ankit Doshi, Ramasubramanian says that this year’s Budget will be challenging and easing KYC norms and focus on capital formation will be key to balancing monetary and fiscal challenges. He also remains optimistic on India equities market.
The Budget is just a day away. There would be so many things to look at – from balancing economic growth and inflation to twin deficits. What are your expectations?
The Budget is going to be challenging. But at the same time, it has become a non-event. To the extent that for this year, the FM has got both, the fiscal challenge and balance of payments challenge. People are looking to see how he is going to balance these numbers. In our view, he has definite options to bring back some of the investment-linked incentives and the country needs them because to a large extent investments in gross capital formation is quite low and further heading down. It will help him get additional revenues and at the same time, it will help jump-start the investment slowdown that we are seeing in the country. So these are some of the things we are expecting.
Are you expecting any announcements specific to the capital market?
We believe that capital market reforms are very critical as many divestment issues are scheduled. We expect some of the discordance between commodity and equity market coming down. The FM will
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