Arun Jaitley Packs a Punch at Debut Investor Meet, Says Citi

File photo: Finance Minister Arun Jaitley

He appeared confident about meeting the April 2016 deadline for implementing the goods and services tax (GST) and sounded optimistic about the infrastructure space, where government spending really matters.

“It’s not about the money; there’s Rs 70,000 crore extra this year, and there are cess inflows, and tax-free bonds. The challenge lies in spending,” Mr Jaitley told investors.

As far as growth is concerned, the finance minister said India’s growth rate could be above the 7 to 7.5 per cent range. The government forecasts growth of 8.1-8.5 per cent while the central bank has a 7.6 per cent gross domestic product growth target for FY16.

Citi says the finance minister “packed quite a punch” at his “first direct investor interaction” in New York. It retained its “strong positive view” on Indian markets; the investment bank expects the Sensex to hit a target of 32,200 by December 2015.

Aditya Narain of Citi said, “The government has lots to show for its year in office: its agenda is aggressive, and the FM’s body language suggests a ‘when rather than an if’ approach. The market too is looking for the ‘when’ – investment activity & earnings momentum; it does have government intent/ activity support.”

The finance minister also got the backing of industrialists such as Anand Mahindra, who heads auto conglomerate Mahindra & Mahindra, and is in the US to attend some programmes with Mr Jaitley.

“@arunjaitley at Council on Foreign Relations New York. Candid, confident, articulate. Symbolic of a more confident India,” he tweeted.

@arunjaitley at Council on Foreign Relations New York.Candid,confident,articulate.Symbolic of a more confident India pic.twitter.com/cC4pg8mD9S

— anand mahindra (@anandmahindra) June 19, 2015

Mr Jaitley’s US visit comes at a time when foreign investors have been steadily selling domestic shares in the cash markets. The benchmark index Nifty is down nearly 10 per cent since hitting all-time highs in March on concerns over the government’s pace of reforms, weak corporate earnings and drought fears.