Arvind Sanger, Managing Partner, Geosphere Capital on Friday said India needs investments - both domestic and international - for job creation.
"The political system should be more worried than it is about the lack of job creation," Sanger told Business Today TV's Aabha Bakaya during the BT Brainstorm Budget 2022 virtual event.
Job creation is need of the hour. Mass manufacturing is the key to job creation for which government should give more incentives to small and medium enterprises, said Sanger.
On Budget 2022, he said the government could successfully resist a populist Budget even though elections were around which he had not expected.
Talking about the growth aspect of the Budget, he said it's important for India to ensure a policy framework, not a budget-oriented framework to see reliable growth.
Commenting on the Indian model of attaining growth, Sanger said closing of the nation to international firms and creating tariff barriers is a wrong way to create world-class industry growth. Growth opportunities for India are phenomenal but it requires international companies to come and compete with Indian players.
Referring to the challenges the Indian economy faces, he said, inflation has hardened in India but RBI needs to be circumspect in raising interest rates.
"It's important for the RBI to stay on the right side of inflation curve," Sanger added.
Oil prices are also a big risk for the Indian economy and no one is investing in new capacity for oil and natural gas in the world. So demand for the commodity is ever increasing against its supply, Sanger said. A relief for India in case of oil shortage and high prices amid the Russia-Ukraine tensions could be the deal with Iran, he added.
When asked about the potential growth stocks, Sanger said, he was very hopeful on commodity retail stocks.
"I am looking at commodities, energy and real estate stories in terms of growth. There are many factors which will drive the real estate demand going forward," Sanger added.
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