Saurabh Mukherjea addressed the students of FLAME University on 25th February 2017. He shed some light on three dimensions of change that our Prime Minister is working towards for our country. He tried to simplify and explain to the audience how these changes are going to affect their lives.
Mr. Saurabh Mukherjea, CFA, serves as the Chief Executive Officer of Ambit Capital. Prior to joining Ambit, Saurabh co-founded an equity research firm, Clear Capital, and also successfully built the Equities business for Execution Noble in India, right from its inception. During his tenure at Execution Noble, it was the highest ranked new entrant for Research in the 2009 Asiamoney polls. Voted as the No.1 Strategist in India in 2014, 2015 and 2016 by Asiamoney, Saurabh has played a crucial role in transforming Ambit into one of the most successful brokers in India. It is under his stewardship that Ambit has been ranked by Asiamoney as the ‘Most Improved Brokerage House in India’ for 5 consecutive years. In 2015 and 2016, Ambit was also rated as the ‘Most Independent Brokerage’ in India. Mr. Mukherjea also writes two fortnightly columns for Outlook Profit and VC Circle. He is a CFA charterholder. Mr. Mukherjea has done his BSc and MSc from the London School of Economics, London, UK.
In his address to the FLAME community, he explained Prime Minister Modi’s three-pronged strategy:
- Attack on black money
- Attack on chronic capitalism
- Attack on the subsidy system
He simplified how all these measures will pave the way of formalizing all businesses; with demonetization and GST leading to the shrinkage of the informal sector. Though in the short run, it will affect a large proportion of businesses as a substantial part of them are in the informal sector, in the long run it will help India as wealth will start to get distributed all over rather than concentrated in the hands of a few. There may be unemployment when all sectors start being formalized but the Universal Basic Income Scheme will help to manage this unemployment to a large extent.
In the long run, capital borrowing rates will come down and cost of land will drop. Hence land and capital intensive businesses will do very well. Due to better road networks, transport dependent businesses like light industrial manufacturing will improve enormously. Additionally, financial saving schemes will see a big inflow as gold or real estate as in investment asset class will loose lustre.
He seemed confident that these changes will be fruitful for the new generation. He encouraged students to think about large trends and capitalize on the opportunities they present. It was wonderful having Mr. Saurabh on campus helping the students better understand the current economic scenario.