As the Union Budget approaches, Laxman Jaiswal, Chairman of Ascon India and a leading entrepreneur in the infrastructure and e-commerce sectors, has identified two critical economic challenges: the depreciating rupee and declining stock market performance. He warns that if these issues remain unaddressed, they could harm investor confidence, economic stability, and the financial security of millions.
Jaiswal explains that the falling rupee, driven by global factors such as geopolitical tensions, rising oil prices, and interest rate hikes, has increased import costs and inflation. To tackle this, he suggests steps like promoting exports, simplifying foreign direct investment (FDI) policies, and encouraging trade in local currencies to reduce dependence on the US dollar. He also emphasizes fiscal discipline, real-time monitoring of forex reserves, and reduced non-essential expenditures.
The equity market’s volatility is another concern, with falling market capitalization eroding investor wealth. Jaiswal calls for measures to restore confidence, such as revising tax structures for capital gains and dividends, offering tax benefits for investment schemes like SIPs and ELSS, and boosting institutional and SME participation. Strengthening digital infrastructure and market regulations is also essential to enhance investor trust and trading experiences.
Jaiswal highlights the link between a weak rupee and a declining stock market, urging a synchronized policy approach to address both issues. He recommends that the Union Budget focus on export growth, job creation, infrastructure investment, and reforms to support startups and innovation. Measures like insurance for small investors during market downturns could also sustain participation and confidence.