Budget 2022: The general budget is being discussed everywhere. Meanwhile, in our special segment Budget Countdown, Latha Venkatesh of CNBC TV18 tries to find out what our investors are expecting from Finance Minister Nirmala Sitharaman. Listing out the demand wishlist of investors, Ramdev Agarwal, market veteran and chairman-cofounder of Motilal Oswal, told CNBC-TV18 about the steps that need to be taken in the current scenario.
Consumer is holding back from spending
Aggarwal believes that COVID has had a significant impact on consumer spending. Presently, the consumer is scared and is holding back from spending a simple consumer. Aggarwal believes that increasing demand is the need of the hour and budget would be a perfect opportunity to achieve this by declaring stimulus.
Incentives will increase consumption
Consumption will automatically increase with the demand boost for the next 12 months. He is confident that more tax collection will be ensured by the government’s demand stimulus. According to Aggarwal, the Centre’s initiative to make things affordable for the consumer will go a long way in bringing the purchasing power back in the hands of the middle and lower middle sections of the consumers.
This stock with Vijay Kedia’s portfolio took upper circuit for the second consecutive day, what do you have?
Government should make things cheap
He said, “The government can take such initiatives to make things cheaper for them (middle and lower-middle sections) instead of making them expensive. Therefore, it requires more thinking, more analysis; Now a lot more, better data is coming from everywhere. I think the officers will be advised to do that work on the demand side and what is necessary to increase the demand at the lower level.”
Union Budget 2022: How long will Nirmala Sitharaman’s budget speech be this time?
Big opportunity for India for 10 years
As far as growth is concerned, he sees a huge opportunity for India for the next 10 years. They feel that the marginal increase in interest rates will not impact the real GDP growth of 8 per cent. He said, “The world is trading at 4-5 negative interest rates. Who could have believed that we would ever trade in this position. We have our own priorities, you fine-tune your growth and then optimize for it. So, according to me, 8 per cent growth will be the priority and then other things come.”
Tax problem on esops solved
On Employee Stock Option Plans (ESOPs), Agarwal raised the problems faced by employees in taxing. He hoped that a proposal in the upcoming budget would try to overcome this problem.
“I would request the Finance Minister to look into this and tax Esops in the same way as startups are taxed,” he said.
.