In an interview with ET Now, legendary industry captain NR Narayana Murthy explains, among many other things, why India doesn't need to worry too much about deficits. Excerpts:China has slowed down. US, of course, is showing improvement in growth, but Europe is not. Latin America has again fallen on bad days. Africa has yet to come up to expectations. Therefore, there is no doubt at all that India is a bright spot.What we need to do is ensure that the enthusiasm of foreign investors is rewarded with ease of business , tax-friendly policies, etc. We need to make them feel welcome. We need to ensure that India is safe to do business in, and that their material comforts are taken care of.It is continuum of progress. There are several things that have happened. For example, my committee report has been submitted to the finance ministry. SEBI first looked at it and after we received their blessings, it was submitted to the finance ministry.We are now looking forward to the budget. Let us see what kind of response will get from it. Knowing FM Jaitley, I personally believe that he will definitely provide encouragement to alternate investment funds. Our data shows that there is tremendous opportunity for job growth, tax collection, and many other things.One of the important things we did as part of the report is say that we want the recommendations to be tax neutral. We do not want the country to lose out in taxes. At the end of the day, only when there is enough tax collected can you do something for the poor in education, healthcare, nutrition and shelter.So, that is what we did. I do think there is a very good sense of cooperation between the industry and the government. We believe that industry will get its achhe din.At this point, revenues are somewhere around Rs 11.4-11.5 lakh crore, while our expenses are somewhere around Rs 16-16.5 lakh crore. So, there is a considerable deficit — about 4% or so. That is obviously a concern.But then, there is another way of looking at it. Developing countries should not worry too much about deficits. These countries have to spend money for creating growth infrastructure.To that extent, I do agree with economists who believe we do not have to get too much bogged down by deficits as long as the money is being used efficiently, properly, transparently — and for bringing better growth.I have always said that the most important thing in India is to reduce the friction to businesses. It is not exactly part of budget, but I do hope Finance Minister Jaitley will use this occasion to do something in this regard.I hope every recommendation of my committee on alternate investment is accepted. Perhaps I am being unreasonable, but that is the hope anyway.Secondly, I would say that we need to enhance allocation to education. Unless we improve education infrastructure both at the primary level and at the higher education level, I do not think we can build a successful India 20 years from now. That is very important.Thirdly, India is one of the real laggards in public healthcare. There is a huge need for investment in public health services. There is a huge need for starting more institutes of public health on the lines of IITs and IIMs. I hope the government will allocate funds to start such institutes in different parts of the country.At the end of the day, let us keep in mind that Swachh Bharat is one of the most important items on the agenda of Prime Minister Modi. If you want Swachh Bharat to be successful, you must lay emphasis on public health.