In addition to financials, the consumer sector presents a compelling opportunity, primarily due to increased disposable income following tax-saving measures announced in the Budget. Consumers can be a nice sweet spot for volume and profitability growth. A large sum, ranging from ₹80,000 crore to ₹1 lakh crore, is expected to be saved by individuals, which can subsequently flow into consumption-related activities, he explained.
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However, Sanghavi remained cautious about the IT and pharma sectors, citing uncertainties related to tariffs, particularly from the US. “IT and pharma have their challenges, partly emanating from outside India. It is slightly difficult to gauge any policy action from the US on the tariff front. We should wait a month or so for further clarity.”Discussing the broader market, Sanghavi highlighted the impact of increased selling by foreign investors and a surge in capital raised by listed and upcoming initial public offering (IPO)-bound companies.
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On the economic front, he reaffirmed that India’s gross domestic product (GDP) growth remains reasonably on track, albeit with some moderation. The 6.5% GDP growth projection might be slightly lower than the initial 2024-25 (FY25) estimates. This is expected due to geopolitical uncertainties and sectoral fluctuations. Some marginal hits and misses in corporate earnings are also contributing to this shift.
For the full interview, watch the accompanying video
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(Edited by : Unnikrishnan)
