A day before the Finance Minister, P Chidambaram announces the Union Budget 2013, Kiran Mazumdar Shaw, chairman and managing director, Biocon is worried about the way the FM will manage the growing fiscal deficit.
Shaw hopes the oil and fertiliser subsidy doesn't translate into deferred spends into the next fiscal. "I just hope that we are not looking at deferred spends because the kind of subsidies on oil and fertiliser which almost translates to a hundred thousand crore is going to be deferred to the next fiscal," adds Shaw.
Shaw believes the agricultural sector needs urgent attention. Shaw believes there is a lack of any kind of policy measures being announced to kick start investment in manufacturing too.
Below is the edited transcript of Shaw's interview to CNBC-TV18.
Q: Despite what Raghuram Rajan spoke about the economy turning around, nothing seems to reveal that the level of confidence has come to a point where we are actually seeing a turnaround and a pickup in actual investments?
A: I personally am very skeptical about the investor confidence coming back to pursue this 6 percent growth. Personally, I am also very concerned with the way the Finance Minister is going to manage the growing fiscal deficit. Infact, I just hope that we are not looking at deferred spends because the kind of subsidies on oil and fertiliser which almost translates to a hundred thousand crore is going to be deferred to the next fiscal. Now, is this a way to assure ourselves that we are doing the right thing and containing the fiscal deficit this fiscal is my worry.
Secondly, I am not seeing any kind of policy measures being announced to kick-start investment in manufacturing. The whole agricultural sector needs urgent attention which is the cause of a lot of our subsidies not being looked at with any innovative measures. I personally believe that the kind of subsides and loan waivers that the agricultural sector is receiving today needs to be converted into credit based incentives for corporative farming Without economies of scale, you are not going to see technology being leveraged to improve productivity efficiency and take jobs from land to industry. So, I am very concerned about all these kind of policy measures and equally, I am looking at the economic survey where there is a huge section devoted to job creation. Are we really going to create real jobs, that is my concern. Where are the enablers for entrepreneurial jobs, where are the self employment incentives?