Budget 2024 expectations: Focus may be on reviving rural economy; more sectors may come under PLI: Rahul Jain of Nuvama

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Rahul Jain, President and Head of Nuvama Wealth believes that reviving the rural economy, which has slowed down due to deficient monsoon, will be the government's focus in the Interim Budget 2024. He also expects more sectors to fall in the ambit of PLI. In an interview with Mint, Jain also shared his views on markets and the sectors he is positive about.

Edited excerpts: We believe the government will focus on reviving the rural economy, which has slowed down due to deficient monsoon. We expect a higher allocation to schemes like MNREGA to increase the per-day income of rural areas. This will likely augur well for two-wheelers and similar bottom-of-pyramid consumptions.

We expect little incentive for the industry. Also Read: Budget 2024: Focus on rural schemes, infra investment likely, says veteran fund manager Mihir Vora Our expectations from the Interim Budget as mentioned earlier will be to give impetus to the rural economy to revive growth, resulting in higher allocation to MNREGA. Further, from a fiscal consolidation point of view, we expect the outlay on infrastructure to be lower compared to the previous years.

As for the manufacturing sector, we expect more sectors to fall in the ambit of PLI. Also Read: Budget 2024 expectations: Nirmal Bang highlights 6 major themes that could dominate the Interim Budget 2024 We have a different take on the global economy. For instance, Japan is doing exceptionally well, US consumer spending is strong, and Europe has a low base as far as economic data is concerned.

Hence, ideally, it should improve from here on. The only problem area is China, where growth is elusive. However, a weak Chinese economy is good for countries like India and the USA, which will have lower inflation,