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Prosperity of every company depends on government, says Rakesh Jhunjhunwala

Updated : March 30, 2021 10:03 AM IST

Market veteran Rakesh Jhunjhunwala of Rare Enterprises and Akash Prakash of Amansa Capital while speaking at an event discussed the various reforms taken by the government and the impact on equity markets.

First up, talking about government reforms and the market, Jhunjhunwala said, “The government is important for general economic growth. If India doesn’t have growth, Titan will not be able to sell jewelry and watches. Asian Paints will not be able to sell paints. So, the government may not be important for specific companies but they are extremely important for the general economic growth on which the prosperity of every company in this country depends.”

“India is now going to face the best part of the second generation of reforms and I think we are well prepared for these reforms and they are going to have an immediate effect on the economy of this country,” he said.

Meanwhile, Prakash said, “When you are buying in India you are making a bet on the next 5-10 years of growth if not longer and if you do not have confidence that the government can create the condition to deliver high growth then that has an impact on what your expectations are for earnings for the broad market and the expectations of how companies scale up.”

“The Prime Minister set a positive tone saying we want to respect the private sector, we want to encourage growth. So that will encourage private sector investment. Therefore, there is a very significant change and approach of the government towards the capital. So it’s a sea change in the government and I am starting to see the impact on private sector entrepreneurs -- the thinking, the approach, the confidence and that’s why I have become a lot more positive,” said Prakash.

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