Russell Napier, the co-founder of ERIC, believes that the Indian government's Budget 2023 should focus on attracting more foreign capital into the country. Despite concerns that the Indian equity markets may be overvalued, Napier argues that the bond market could be quite attractive for foreign investors.
Napier also expects to see a new form of recession with huge amounts of government fiscal support and subsidies. He warns that the present recession will lead to long-term structural issues.
Also Read: Budget 2023: Stock market investors expect focus on job creation, infra spending
In terms of inflation, Napier said, governments around the world want to have inflation, but at lowered levels compared to historical standards. Napier noted that governments are happy to see inflation levels lie between 4 and 6 percent.
Overall, Napier believes that the Indian government needs to focus on attracting foreign capital and addressing issues related to inflation in order to navigate the current economic challenges.
Also Read: Budget 2023 to be more or less a non-event, says Samir Arora
Speaking to CNBC-TV18, Napier said, one of the rare achievements of India is that it has been able to grow with relatively lesser debt. However, he believes that India's current problem is not a macro problem, but rather a valuation problem.
Napier also expects to see a new form of recession with huge amounts of government fiscal support and subsidies. He warns that the present recession will lead to long-term structural issues.
Also Read: Budget 2023: Stock market investors expect focus on job creation, infra spending
In terms of inflation, Napier said, governments around the world want to have inflation, but at lowered levels compared to historical standards. Napier noted that governments are happy to see inflation levels lie between 4 and 6 percent.
Overall, Napier believes that the Indian government needs to focus on attracting foreign capital and addressing issues related to inflation in order to navigate the current economic challenges.
Also Read: Budget 2023 to be more or less a non-event, says Samir Arora
First Published: Jan 25, 2023 10:32 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!