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Big bull Rakesh Jhunjhunwala on slowdown: ‘India not in ICU’, consumption will revive in 2-3 months

FE Online

Even as the economy and stock markets see a fall, the scenario is expected to improve in the coming days, said veteran investor Rakesh Jhunjhunwala. However, no clear timeline can be put to it, the billionaire investor also said, adding the economy will see a consumption revival in 2-3 months. "India (is) not in ICU", the big bull, as he is popularly known, told CNBC-TV18 in an interview. The economy is bound to see a slowdown with the arrival of elections, and the NBFC crisis only accentuated the liquidity tightness in the system, the market veteran also said. On the current scenario of stock markets, Rakesh Jhunjhunwala said, "Not happy with state of market right now. The economy and markets will rebound, can't put a timeline though." The banking sector is expected to do well going ahead, he added.

The economy may revive anytime soon, but the economy is not holding a 10 per cent GDP rate model as of now, he also noted. On the fiscal deficit, Rakesh Jhunjhunwala said that fiscal expansion is the need of the hour in the near term. "(I) See no problem if fiscal deficit goes up to 3.7% of GDP, he added. Till India takes some long-term economic reforms, things would not smoothen up for the economy, he noted. The ongoing NPA cycle will not be seen in the next 10 years and the peak of NPA recognition cycle is behind us, he added. "We are in the process of correcting past mistakes and policies, and people with integrity are winning, he said.

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On global trade war, Rakesh Jhunjhunwala said that the trade war is actually a geopolitical war, which will not go away quickly. The trade war will impact India positively, he also said.