Amid global slowdown, India needs to keep solving domestic structural issues and focus on reforms because that is where sustainable growth is going to come from, says Prasun Gajri, chief investment officer, HDFC Life. The life insurance joint venture between HDFC and the UK's Standard Life expects corporate earnings growth to recover during the next financial year to end FY17 with low- to mid-teen earnings growth, Gajri said in an interview to ET. Edited excerpts:
As the government has stuck to fiscal deficit target and not tinkered with capital gains tax in the Budget, where do you expect markets to be in the next 6-12 months?
In my view, sticking to the fiscal deficit target was an absolute must. We are living in a world where growth is scarce and key central banks are on a divergent trend. The degrowth in global trade continues and the debt problem has shifted from the developed world to the developing world. In this uncertain environment, it is imperative that, we as a country have stable to improving macroeconomic parameters, be it fiscal deficit, current account deficit or inflation.
