After Rakesh jhunjhunwala said that Moody’s India credit rating upgrade is a “fitting answer to the Modi government’s critics,” ace investor Porinju Veliyath lauded the government’s efforts surrounding structural reforms. In an interview to CNBC TV18, the Kochi-based stock market expert said, “Investors are underestimating the long-term impact of the unprecedented structural reforms and action by this government. People should be politically unbiased to understand this.” Porinju Veliyath added that there is fear among corrupt individuals and companies for the first time in the country.
“I was listening to a snippet by the Prime Minister. By linking the Aadhar to the subsidy system, India is saving Rs 57,000 crore per year,” Porinju Veliyath observed. He also explained that previously, out of Rs 100 earmarked by the government towards upliftment of the poor, only Rs 10 would make its way to the needy. “ The structural migration from black to white and from unorganised to organised, will take our economy long way up,” he told the channel.
Porinju Veliyath has always been supportive of the current government. In an interview to ET Now earlier this year he said that Narendra Modi was his biggest multi-bagger pick. “ In 2013 before the elections, I identified Narendra Modi as one of the best multi-baggers for India irrespective of any politics or anything. I feel that was the base and when you have a base, you have confidence.”
While many had questioned the timing of Moody’s India credit rating upgrade,Rakesh Jhunjhunwala said that the timing didn’t surprise him at all. Ace investor said that it’s an endorsement of the government’s reform agenda, and will further bolster India’s sentiments globally.“More important than the financial implications, is the boost to India’s sentiments,” he told CNBC TV18.
“Moody’s believes that those (reforms) implemented to date will advance the government’s objective of improving the business climate, enhancing productivity, stimulating foreign and domestic investment, and ultimately fostering strong and sustainable growth. The reform program will thus complement the existing shock-absorbance capacity provided by India’s strong growth potential and improving global competitiveness,” Moody’s said in its report on India.