Budget 2024 Expectations: India's Path to $5 Trillion Economy | Sectors in Focus | Oneindia News
India will be a $5 trillion economy sooner than expected. There will likely be a massive push in the infrastructure and defence sector, according to Finvasia MD.Tune in to listen to how the Budget announcements is expected by specialists.
Watch the current episode for all updates on the Budget.
#Budget2024, #UnionBudget, #NirmalaSitharaman, #ModiSarkar3, #stockmarket, #Budgetsession, #UnionBudget24
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Watch the current episode for all updates on the Budget.
#Budget2024, #UnionBudget, #NirmalaSitharaman, #ModiSarkar3, #stockmarket, #Budgetsession, #UnionBudget24
~HT.178~PR.274~GR.125~ED.102~
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NewsTranscript
00:00Hello and welcome. Welcome to the budget season. We are all anxiously waiting for the upcoming
00:09budget on July 23rd. We have a special guest today, Sarvajit Virk, Co-Founder and Managing
00:15Director, Finvasia. Hello, Sarvji.
00:17Hi, Shruti. Thank you very much for being here.
00:22Thank you, Sarvajit. Before I dig in deeper into what are your expectations, you know
00:28what could impact investors, what is your overall expectations from the budget, from
00:35the upcoming budget?
00:36Sure. I think like all of us, you know, it's very exciting to see what we have in this
00:43budget. I think predominantly I have broken this budget into three I. One is more focused
00:51on individuals. Second is more focused on investments. And third is going to be more
00:57focused on the industry. So keeping that three I in perspective, I believe that the budget
01:04will surely have something and largely very detailed, more focused as a long-term vision
01:12strategy from the government, keeping in mind in these three, you know, sectors, which have
01:18really done tremendously great in the last few years, but at the same time has a lot
01:24of potential, if you really ask me, from where we are to where we really can achieve, say
01:29a $5 trillion economy or beyond. So a lot needs to happen. And I feel this budget will
01:35surely bring in for us.
01:36Right. I would usually, you know, start digging in deeper and ask you about, you know, what
01:42is the market expecting? But you spoke about $5 trillion economy. Well, India is so far
01:48the fastest growing economy, you know, even the IMF raised its GDP forecast to 7% from
01:546.8%. It probably will be the fastest growing economy in the coming years. Inflation is
02:01well almost under control and more or less everything looks good so far. So what is your
02:09projection that when do you expect the Indian economy to be $5 trillion economy?
02:16I think these are numbers which are good as a milestone for us to motivate. But I think
02:22the larger context is beyond $5 trillion as well. You know, and I strongly believe that
02:29COVID was surely something as a learning curve, but had that not happened, you know, the milestone
02:35could have achieved much faster. But giving a number, I think is not the actual goal.
02:42I think what we need to start talking about is that what India at 100 as the age, what
02:48we talk about as India at 75 is what we are really planning to achieve. $5 trillion economy
02:55is one of our targets or milestones, but the ultimate goal beyond that. So in that particular
03:01perspective, I think $5 trillion economy probably next two years to put up numbers to it. But
03:09vision is beyond that. All right. Interesting. Very interesting. And how do you anticipate the
03:14upcoming budget will impact investors sentiment and trading activity? See, we have really seen
03:23how you know, the financial inclusion has really happened in the last few years. Indeed, I was just
03:29reading an article yesterday, where even the India rating when it comes to financial inclusion index
03:36has also gone up from the previous year. I think we were in 61%. Now we are around 64% something.
03:44And keeping that perspective in mind, you know, as the investments are coming in the market,
03:50as the government is also focusing majority on the infrasight, I think a totality if we looked at,
03:58it is the sentiment building exercise, you know, for people to continue to invest for foreign
04:03investors to look at India as the next right destination when it comes to investment, and even
04:10for a domestic growth, you know, if you really see how the progress has been. So putting all that
04:15together, I think it's the positive sentiment, which has really built up in the last few years.
04:20And with the stable government, I feel there is going to be a lot more which will come and which
04:26will be offered by the government to make sure that the positivity as an ecosystem as a momentum
04:34in the market continues. And once you know, the government continues to participate,
04:40I think it always complement to the overall sentiment of retail investors. And I think
04:45now India is more looking at retail participation much higher than having those days where we were
04:51only looking at foreign investors, you know, to venture in India. So I think the whole shift
04:57is also a positive impact where people have started looking trading and investments and
05:04equity market as one of their asset classes in portfolio. And I think that's the best part about
05:09India, that we have wider participation also coming in. Right, right. Now, moving on to
05:16larger plans in the budget, what do you see? What is your outlook on the government's CapEx plans?
05:27See, if you really look at most of the developed countries, we can do a quick dipstick by saying
05:35that the infra has to be really at par when it comes to calling ourselves as one of the
05:42developed countries. And I think that is where, you know, the focus has been in the last few years,
05:48we have seen, you know, how much investment has really gone into building the grassroot of
05:55connectivity between the cities between the states, which obviously promote, you know, a local
06:01livelihood, but also give an, you know, an opportunity for industry to continue to expand.
06:08So putting all that perspective, I feel that yes, there, there should be a larger capital
06:15investment, you know, fund more focusing on building the infra, building the
06:23ease of doing business, building the ease of living. I think if we put all of that together,
06:29the next milestone in the next five years, predominantly needs to focus on two things. First,
06:36connecting cities, but also at the same time, enhancing the existing cities, because we have
06:43seen how, you know, the bigger cities have really got into a situation where the local population
06:50needs to move out, but then they still have a dependency on those cities and states. So I think
06:55a two level strategy where a macro level at the infra, but at the same time, micro level,
07:05giving a boost to the local cities and states, when it comes to infra development, I think that
07:12will create a lot of that will create investors and government to create a roadmap, which will
07:20then, you know, take us to the to be the top three developed countries of India of the world.
07:27Right. So, Vijit, you spoke about innovation. Now, the kind of the impact that technological
07:36advancements like, you know, AI has in the past few months, if I could say,
07:42what do you think? Or how do you think Indian stock market will have an impact from AI?
07:49See, I've always been advocating for the last few years that AI will really bring the next
07:54level of financial inclusion. And that is for different reasons. Not only because we are very
08:02rich on data, but at the same time, the opportunity which AI can bring in to the vernacular side,
08:09more so with the diversified background, diversified demographic and so many languages,
08:16you know, which India is proud of, I think that solution can really be used through AI. So AI will
08:25do a lot of things is what my understanding is. And we have been very strongly, including that
08:32AI in our internal products, also building up a lot of products for the retail clients.
08:37So in the innovation side, I think, yes, AI can really help by creating very customized
08:46solutions, right? I mean, those are the days when there used to be like, one problem, one app,
08:51one solution. Now, the world is moving towards my problem, my app, my solution. And that whole
08:57customized, you know, expectations, that whole customized, you know, way of having life will
09:04really come through AI and can really give that additional wealth creation, you know, financial
09:13inclusion through AI. And I'm strongly advocating, but I also feel that this is the, you know, a
09:20turning point for us, the more we can invest on AI, their infrastructure, building models on our
09:27data, we can really be the next game changer by creating those kind of stories, those kind of use
09:36cases where people will say that, oh, India has done it, we can copy it now. Yeah, yeah, perfect.
09:43And then quickly moving on to markets, any measures expected from you, as in fact, the budget that you
09:51expect, that will strengthen investors, protection, education, awareness about the market?
09:58Yes, I think, you know, awareness is one of the most important aspects in India right now,
10:05especially, you know, with so much inclusion happening, so much, you know, can really be
10:15built up through AI when it comes to content. So which means that the credibility, the biasness,
10:22you know, which really, at times become part of technology product development have to be
10:27kept in mind. So yes, I feel that government should definitely focus on creating, you know,
10:35right platforms where, you know, people can really understand before they get into this market,
10:40because it is a wealth creation, it's an investment. And, you know, given the history
10:46of India, how we always look at finances, add money from a long term perspective. So I think
10:54from a government standpoint, yes, I think more awareness, more ease of doing business. I know
11:02last year, the finance minister also emphasised that, you know, we need to have more ease of
11:08doing business in capital market. And I think that's an extension of now we should start looking
11:13at more and more right ways where people's safety is looked at, but at the same time,
11:21they have an opportunity to start investing and from a retail standpoint, you know, budget day
11:28is one of the good days, you know, there is a volatility, yes, there are news driven opportunities
11:33people invest. But at the same time, you know, risk is something which I always advise everyone
11:40to be very cautious of, be mindful of when you should invest, how much you should invest,
11:47and continue to invest, right. So don't look at that in the morning, I'm just going to pump in
11:51money. And then, you know, I'll just take it out at the end of the day, because it's budget, I will
11:54make money. I think we need to be very careful of, you know, events like this. But at the same time,
12:00keep your long term horizon very, you know, clear in your head. And then accordingly, you can just
12:06continue to, you know, to invest in different asset classes, including capital market.
12:12Sure, sure. Sarvajit, one last question. Do you think this upcoming budget will be a populist one?
12:20So I think the definition of populist has really changed in last so many years.
12:27Because it's the expectation, it's a demand to supply, you know, which has really
12:33redrafted this word populist. Back in days, you know, a change in personal income tax slab
12:41used to be considered as populist. Whereas if you really look at it now, and more importantly,
12:47what we are looking at, as a country and an industry for the next five years, 10 years,
12:54there are always certain things which are good to have must to have. But then more importantly,
13:01is that what are we really planning to achieve in the next five years or beyond. So keeping that
13:07all thought together, I think a balanced budget is always beneficial for the growth.
13:13There are certain things which you always expect. And they are also important for the right,
13:21you know, section of country to grow and, you know, build their assets, their income.
13:29But from a long term perspective, I think, you know, there is a lot more which needs to be looked
13:34at. And then build the budget and not just say that, hey, that's populist for a certain segment,
13:41we need to look at the larger picture. And I think that is what creates an asset. And that is what,
13:47you know, creates a country like India, where we are right now, that historically, we have really
13:52kept a balanced budget, keeping in mind the industry and individual and investments. And
13:58this is where we are. And I don't see there is reason for us to look back, we will definitely,
14:02you know, create stories in 20 years, 50 years, when people will talk about it, what we are doing
14:08now. And that is what will make us a great country. Right. So populist or not, we are
14:16very anxiously and waiting for the upcoming budget. That was Sarvejit Virk, Co-Founder and
14:23Managing Director, Finvasia. Sarvejit, thank you so much for joining us today. Thank you.
14:29Thank you very much for calling in. Thank you very much.