The economy needs to be made competitive and Indian retailers are already importing goods, he added. With tremendous political opposition, Jhunjhunwala is not very hopeful of major reforms.
"The retail sector will be one of the fastest growing sectors in the economy, Jhunjhunwala told ET Now. He is bullish on retail stocks owing to their strong growth potential. He also likes agriculture related sectors.
The investment guru also sees opportunities in some of the 'badly beaten down' infrastructure and real estate stocks. Jhunjhunwala feels that FDI in aviation by foreign carriers will not make a big difference to the basic profitability of airlines. "I will not be bullish on airline stocks unless crude oil prices come down," he said.
"I have no assets other than equities, maybe a house or an office," he joked, when asked about other asset classes as investment bets. On the topic of investment prospects outside India, Jhunjhunwala said that intuitively he sees good long-term investments in Philippines and Indonesia.