Indian Raiway

He mentioned things with regards to the investments that NRIs can do into mutual funds. What do you make of that? A few people mentioned that this would probably enable a lot more money to come via the direct route into the Indian equity and that would help inflows. Do you think that is a plausible argument?

See it is not only the NRIs. If I read it correctly, it is foreign nationals and there is lot of difference. NRIs can even put money today. There is no problem about NRIs putting money in mutual funds. But if it is foreign national, then I would personally feel that for medium to long term, it is a big deal. A lot more money could come. The question is that today also they have avenues to invest through offshore funds. But it will be much easier to invest into so many domestic mutual funds which are available, so many domestic schemes which are available even if it extends to fixed income products which are not being offered by a lot of offshore counterparts of ours.

Now if you have to do a fixed income investment today and even if your view is that Indian currency is going to be stable for the next 3 years and it is not going to appreciate or depreciate, there is a interest rate differentiate which you can pocket in today. We have to still see the details as to who is eligible, what are the details of those investments which are coming, what are the taxation issues which are related to making an investment into Indian fund.

But once those details are out and if those details are favourable, then I would be quite optimistic that a lot more money can come. We will have to give it time. Do not expect that to flow in the month of April and it needs a persistent effort on behalf of asset management companies. There is lot of audience there who is willing to listen to India’s story.

Does the budget soothe your nerves a little bit because of the fiscal deficit target set out or inflation , crude oil prices still remain a concern?

The budget itself...