Adrian JohnsonTLDR: Mr. Satish Ramanathan, CIO – Equity at JM Financial Asset Management Ltd., shares his expectations for the upcoming budget. He believes that the government should focus on creating a conducive environment for investments, boosting infrastructure spending, and addressing sector-specific challenges. Ramanathan also emphasizes the importance of a balanced approach to fiscal consolidation and the need to incentivize long-term investments in the capital market.
Mr. Satish Ramanathan, CIO – Equity at JM Financial Asset Management Ltd., has high expectations for the upcoming budget. He believes that the government should focus on three key areas:
1. Creating a conducive environment for investments: Ramanathan emphasizes the need for the government to create a favorable business climate that attracts both domestic and foreign investments. This can be achieved by simplifying regulations, reducing bureaucracy, and ensuring a transparent and fair playing field for all investors.
2. Boosting infrastructure spending: Infrastructure development is crucial for economic growth and job creation. Ramanathan suggests that the government should increase spending on infrastructure projects, especially in sectors like transportation, energy, and healthcare. He also highlights the importance of public-private partnerships in mobilizing capital for infrastructure development.
3. Addressing sector-specific challenges: Ramanathan points out that different sectors of the economy face unique challenges, and the budget should address these challenges accordingly. For example, the agriculture sector needs support in terms of irrigation, technology adoption, and market linkages. Similarly, the manufacturing sector requires incentives for innovation and competitiveness.
Ramanathan also emphasizes the need for a balanced approach to fiscal consolidation. While it is important to reduce the fiscal deficit, he believes that the government should not compromise on public spending, especially on critical sectors like healthcare and education. He suggests that the government should focus on revenue generation through tax reforms and widening the tax base, rather than burdening the common man with additional taxes.
Furthermore, Ramanathan highlights the need to incentivize long-term investments in the capital market. He suggests that the government should introduce tax benefits for long-term investors, such as lower capital gains tax rates on equity investments held for more than a certain period. This would encourage retail investors to stay invested for the long term, leading to stability in the capital markets.
In conclusion, Mr. Satish Ramanathan expects the government to focus on creating a conducive environment for investments, boosting infrastructure spending, and addressing sector-specific challenges in the upcoming budget. He also emphasizes the need for a balanced approach to fiscal consolidation and the importance of incentivizing long-term investments in the capital market.