Reforms Picking up Despite Oppn, Foreign Investors Will Keep Faith Alive in India: Rakesh Jhunjhunwala

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Rakesh Jhunjhunwala, partner at RARE Enterprises, said on Monday that it is most likely that foreign institutional investors, which have been net equity buyers since April, will keep their faith alive in India. This could help India achieve its double-digit growth target in the next five years, he said in an interview with CNBC-TV18.

In the run-up to Diwali, the Indian market recovered from coronavirus wounds and was able to re-examine unchartered territory, and a large part of the recovery could be attributed to the net inflows of foreign institutional investors in spite of muted earnings and economic results.

“I am 80 per cent less frustrated today than I was in June,” said Jhunjhunwala. He added that the pace of government reforms is picking up now as compared to in June.

"Was earlier frustrated by the slow pace of reforms. Now the pace of reforms is picking up," he said.

In terms of reforms, he said the government is doing extremely well. According to him, reforms being the focus, there will be a tsunami of capital flowing into the stock market.

"It is not easy to do reforms in India. The government is hell-bent to carry out reforms despite political opposition. I am extremely happy with the kind of reforms done by the government," he said, Moneycontrol reported.

Jhunjhunwala said he believed the government will soon sell the PSUs strategically.

In the next 5 years, government reforms, along with liquidity, will drive India towards double-digit growth, he said, while being optimistic on the economic growth opportunities that lie ahead for India.