Billionaire investor Rakesh Jhunjhunwala on Tuesday said he approved of the Union Budget 2021 released by the government on Monday, rating it "10/10".
He told CNBC-TV18 that the budget was conveying much more than what was being understood, adding that it was a clear shift signalling that the government would do "whatever it takes" to grow economically.
He said the budget indicated that the government will be bold, and was laying the ground for India to witness double-digit growth. According to Jhunjhunwala, the budget was growth oriented.
"We have a resurgent, bold India on course for double-digit growth. India will not be able to absorb all the cap expected to come into the country. FY22 fiscal deficit will be between 6-6.5 percent and tax collections will be much better," he said.
He pointed out that for the first time, the government had called out rating agencies for the way the viewed India, adding that the country will "overtake China in the next 25 years."
The budget is a political message and shows a shift from socialism comparable to the 1991 liberalisation reforms, he said. The largest money will come from sovereign funds, he added.
Jhunjhunwala said he expected pension and sovereign fund money to go in the infrastructure sector, and that there will be a relay race among sectors, which will all do well.
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"Directionally, the government withdrawing from business is very positive," he said, adding that the recent correction was a swift one, typical of one in a bull market.
He said the rallies were liquidity-led because demand was greater than supply. According to him, the quarterwill see 1% growth, which will be "sharply higher" next year as the capital expansion cycle had just started.