Economic Survey projects 2017 to be a game-changing year for growth: Jayesh Mehta, BoA Merrill Lynch

In a chat with ET Now, Jayesh Mehta, Country Treasurer, BoA Merrill Lynch, shares his views on the Economic Survey 2014-15. Excerpts:

ET Now: Economic Survey highlights gives us a sense that FY17 would be perhaps a game-changing year in terms of growth and fiscal deficit containment. What is your take?

Jayesh Mehta: People have been talking about how a rise in infrastructure spend would disturb the fiscal deficit number and the FRBM road map. I do not really see that happening at this juncture.

My feeling is that they will maintain the deficit target at 3.6%. They will continue their efforts to achieve the FRBM targets. I think a lot of infrastructure spend would actually come through government companies, like was the case in the mid-90s. The point to note here is that it would be off the government's balance sheet.

So, the government will be able to stick to the 3.6% target. There is also excess capacity now; so new capex will happen once the demand starts coming back. That will happen through the government's investment in infrastructure.

A lot of this will have to happen at the state level. We see that happening, and that's why we are quite optimistic.

And you are absolutely right: 2017 is going to be a game-changer. All our expectations and hopes should get fulfilled in 2017.