Budget did not help stimulate economy: Andrew Holland

"The companies I speak to are all saying that things are turning down very quickly. To reverse that will take a lot of effort and I don't think the Budget helped do any of that," Holland said.

CNBC-TV18

July 22, 2019 / 14:57 IST

Andrew Holland, chief executive officer at Avendus Capital Alternate Strategies, shared his views on market fundamentals and overseas inflows.

“For the domestic alternative investment funds (AIFs) industry, it is a big devastating blow,” Holland told CNBC-TV18 on July 22.

When asked about the pressure on markets and more selling from the foreign institutional investors (FIIs), he said, "Budget did not help stimulate the economy," he added.

On the comparison between the foreign portfolio investments and the AIFs, Holland said, "Obviously the foreign investors will be a larger amount. However, when you are trying to develop your own industry and you want to manage from India, you are killing it off in one go. It will be the FPIs which will have the bigger impact but Category-III growing at 40 percent is probably going to degrow this right now unless they do a pass-through which is the only way you can effectively give the right tax to right people."

"India has always been sentiment-driven. So if we are all negative, we are all negative or super-negative. The companies I speak to – whether it is large companies or mid-sized companies or even private companies – are all saying that things are turning down very quickly. To reverse that will take a lot of effort and I don’t think the budget helped do any of that. I think the next quarter is going to be a bit of a washout too unless the government steps in. Given the mandate the government has, I am surprised they didn’t use this opportunity to do something. You could spend more and do more and people would be happy with that, " Holland said.