Features

Rakesh Jhunjhunwala: Trump's trade war is good news for India

Billionaire investor Rakesh Jhunjhunwala is upbeat on the prospects for India.

948_MW_P13_guru

800054124

2017 Hindustan Times

Rakesh Jhunjhunwala, founder of Rare Enterprises

"The China-America spat on trade is a great opportunity for India," reckons Rakesh Jhunjhunwala, the billionaire investor often described as India's answer to US tycoon Warren Buffett. With the Indian government taking steps to make it easier to do business in the infamously bureaucratic nation, "I don't see any reason why growth in India will not come back with a bang", Jhunjhunwala tells Tanvir Gill of CNBC.

India's economy has been struggling with upheaval in the banking sector and weak investment, but reforms to the tax system alongside efforts to tackle corruption under Prime Minister Narendra Modi (who at the time of going to press looks likely to win re-election for another term), mean that things are gradually improving, he says. "The journey to limit crony capitalism: it's a journey, not a destination. Slowly but surely in India, crony capitalism has died and governance is what brings about real growth."

While a Modi victory may not bring a repeat of 2014's bonanza year for the Indian market, Jhunjhunwala remains upbeat. One of the most appealing sectors, he reckons, is the airline industry. Air travel is "a big growth story", yet there are only a few players in India, some of whom are insolvent. New rivals are unlikely to emerge in the near future because of the huge costs involved in setting up in the country. "So you're not going to have new airlines, this market is going to grow, there are going to be three groups of solvent players... what's going to happen?I'm extremely bullish."

Recommended

Everything is collapsing at once – here’s what to do about it
Investment strategy

Everything is collapsing at once – here’s what to do about it

Equity and bond markets are crashing, while inflation destroys the value of cash. Merryn Somerset Webb looks at where investors can turn to protect th…
23 May 2022
The world’s hottest housing markets are faltering – is the UK next?
House prices

The world’s hottest housing markets are faltering – is the UK next?

As interest rates rise, house prices in the world’s most overpriced markets are starting to fall. The UK’s turn will come, says John Stepek. But will …
23 May 2022
The end of the era of optimisation
Global Economy

The end of the era of optimisation

A focus on maximising returns has made economies too fragile, says Edward Chancellor.
23 May 2022
What's behind Sri Lanka’s crippling debt crisis?
Emerging markets

What's behind Sri Lanka’s crippling debt crisis?

Sri Lanka has been hit by a triple whammy of economic shocks and has gone to the IMF for a bailout. It may just be the first domino to fall in a globa…
20 May 2022

Most Popular

Imperial Brands has an 8.3% yield – but what’s the catch?
Share tips

Imperial Brands has an 8.3% yield – but what’s the catch?

Tobacco company Imperial Brands boasts an impressive dividend yield, and the shares look cheap. But investors should beware, says Rupert Hargreaves. H…
20 May 2022
Barry Norris: we’re already in the 1970s. Here’s how to invest
Investment strategy

Barry Norris: we’re already in the 1970s. Here’s how to invest

Merryn talks to Barry Norris of Argonaut capital about the parallels between now and the 1970s; the transition to “green” energy; and the one sector w…
19 May 2022
Share tips of the week – 20 May
Share tips

Share tips of the week – 20 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
20 May 2022