Budget 2013: Mutual Fund industry needs support to increase penetration, says Sandesh Kirkire

NEW DELHI: Given the fact that the Gross Domestic Product (GDP) growth rate has hit a decade low, Sandesh Kirkire, CEO of Kotak Mutual Fund is of the opinion that the Budget 2013-14 will be very important in salvaging the economy from the current situation.

"The 25 basis points repo rate cut in January has set the tone for encouraging capital formation and investments. However, moderation in government borrowing is necessary for the commercial sector to raise the needful resources at viable cost," Kirkire said.

Kirkire has emphasised the need for 'a serious approach' to fiscal discipline. Kirkire also said that simplification of tax, trade and investment procedures would be helpful in re-igniting the growth engines of the economy.

Kirkire added that while the penetration of mutual funds is increasing, its knowledge and reach needs much dissemination. "Further incentivization and support for reach and access would be much hoped for," he added.

Finance Minister P Chidambaram will present the Union Budget 2013-14 on February 28. The industry is looking at the budget to provide the necessary growth impetus to the economy.