Visionary budget with focus on long-term growth: R Doraiswamy, LIC

As markets digested the Union Budget amid mixed reactions, industry leaders offered a longer-term perspective on the government’s priorities and growth agenda. Speaking to ET Now, R Doraiswamy, CEO and MD, LIC, described the Budget as a forward-looking roadmap that aligns with India’s ambition to become one of the three largest economies in the world.“This budget for me is a visionary budget that defines the new India and the government’s commitment to advancing India among the top three economies of the world,” Doraiswamy said. “We see an emerging India that is scaling up in many ways, and the focus on the three kartavyas that the finance minister has talked about.”

He highlighted emphasis on seven strategic industries, strengthening MSMEs and improving rural incomes as key pillars of the budget. “The focus on seven strategic industries, strengthening MSMEs, and more importantly, the focus on improving the income of Bharat or India’s rural population is something that really makes it look and sound like a visionary budget to me,” he added.

While markets reacted negatively in the immediate aftermath, especially after the Securities Transaction Tax (STT) hike, Doraiswamy suggested sentiment could improve once investors assess the broader development momentum.

“No, actually this may have been something that was not expected. So the initial reaction of the market is undoubtedly negative. But if you go through the fine print, and especially the points that they talked about – infrastructure development, logistics, investments, data center promotion, technology, rare earths, etc. – I think the market will slowly come back. That’s what I expect,” he said.

In terms of sectors that will benefit, Doraiswamy pointed to infrastructure, biopharmaceuticals and education as key gainers. “Certainly, the strategic sectors they have talked about, especially the investments in infrastructure, will be high, which will help the country to develop. The road corridor, the waterways that are being developed, the investments in biopharmaceuticals in particular and especially the education focus on upskilling the youth and making people ready for work is something we can look forward to,” he noted.

Doraiswamy wants to address concerns around higher budget numbers and higher gross borrowings, saying insurers can see this as an opportunity rather than a constraint. “I see it as an opportunity for insurers because we are a major player in the government bond market, and I look forward to the options available to us for investments, which will be in the interests of the insurance sector,” he said. When asked to rate the budget, Doraiswamy refrained from assigning a numerical score but indicated broad satisfaction with its long-term growth orientation.

“I don’t want to do that, but I will certainly say that this is on the expected line, especially when it comes to the long-term growth aspiration of the country. I am sure that this will help the industries grow. A lot of attention is being paid to the growth of rural incomes, the special fund created for credit guarantees. All these things will help the development of the country as a whole, and also the focus on the technology sector, which will be something of the future. I consider this budget quite satisfactory,” said him.