Pain to continue in economy, "time bombs" still remain, says Nepean Capital's Gautam Trivedi

"There are still time bombs that haven’t been defused" in the economy, said Gautam Trivedi, co-founder and managing partner of Nepean Capital, referring that pain is likely to continue in the country's financial health despite the government's recent measures including the cut in the corporate tax rate. He, however, said that foreign investors were starting to take a relook at India.

“The fact that the government did what it did is by any stretch a landmark. I still think that more needs to be done, there is still a pain in the economy, there are still time bombs that haven’t been defused and as of the end of August, total mutual fund (MF) exposure to non-banking financial companies (NBFCs) is still about Rs 2 lakh crore. That is a staggeringly big amount...," said Trivedi in an interview with CNBC-TV18.

On corporate tax rate cut, he said, “If I was the finance minister (FM) and if I had about Rs 1.5 lakh crore to play with in terms of figuring out how to stimulate the economy, I would have probably gone for something else which is — firstly, cut income tax rates across the board. Secondly, I would have gone for a goods and services tax (GST) cut, bringing down the prices of not just automobiles but in general goods and services, which would make things more affordable and you have got a falling interest rate environment. So a cocktail of these three would be perfect to spur the demand back in the economy as soon as possible versus doing it at some point in the future. "