Budget 2024-25: A Case For Increasing Foreign Ownership In Private Banks From 74% To 100%

Keki Mistry, former Vice Chairman and CEO of HDFC Limited, now merged with HDFC Bank Ltd, provides insights into the robust state of the Indian economy and shares the key themes for Budget 2024-25. Highlighting growth as a primary focus area, Mistry stresses the need to sustain momentum across sectors such as construction, real estate, housing, and infrastructure. He says that growth will spur job creation, which in turn will further drive economic expansion. Mistry admits the challenges posed by food inflation and the job losses during the COVID period but remains optimistic about fiscal consolidation. He also highlights the importance of tax rate reductions in boosting tax collections and calls for adjustments in individual tax rates. In a bold move, Mistry suggests a case for raising foreign ownership in private banks from 74% to 100%, which will substantially increase the foreign investment inflows.