The NDA government has achieved a decisive mandate that will not be tested for at least 2-3 years. Therefore I hope they focus on fixing infrastructural issues in the economy rather than falling in the trap of synthetically aiming for 6% growth.
Inflation and interest rates are in a manageable range. The budget should be geared towards fixing jobs which will be the key for long term growth. For that, we need a positive mood within Corporations. But Corporations need help with their balance sheet. This help can be provided via a two-pronged strategy – make foreign equity route palatable for all stakeholders and provide tax exemptions in a meaningful manner.
On the tactical side, we should spend money to modernize RBI and templatize investment processes. We need to attract foreign debt as developed equity markets are getting too hot and 2020 may see rising interest in India's private debt. Masala bonds are not easy for small to mid-sized transactions.
Whether or not the NDA encounters geopolitical earthquakes in 2020, it is likely to face major headwinds resulting from internal policies such as NRC, CAA, etc. Therefore it is their best opportunity to apply long terms fixes to the economy and set it on a path to political autonomy and policy credibility. Make hay while it's sunny.
(The writer is the co-founder & CEO, Cianna Capital.)