India is likely to continue to be resilient in the face of headwinds to its GDP growth, said HDFC Chairman

Key Highlights :

1. Global headwinds are likely to slow down India’s GDP growth, but the country is more resilient than many large economies.

2. Entrepreneurship in India has exploded because of the conducive startup environment in the country and India has the third largest number of startups after the US and China.

3. In the recent period, geopolitics has dominated over geoeconomics with spillover impacts on trade, services, technology, capital flows and even in the mobility of the labour force.

4. There is immense distrust amongst countries at a time when we most need global cooperation to solve common pressing issues like global supply chains, global warming, cyber threats, money-laundering, data privacy, responsible use of artificial intelligence amongst several others.

5. Parekh also said that the other critical global issue of the Western world has been the sudden change from years of quantitative easing and negative interest rates to a sharp rise in interest rates to combat inflation.

6. Young entrepreneurs should focus on rural and tribal areas, which have immense potential.

     Mumbai: Global headwinds are likely to slow down India’s GDP growth, but the country is more resilient than many large economies, HDFC chairman Deepak Parekh said Saturday. India has enough tailwinds with political stability, vaccine security, food security, a robust domestic consumption-based economy, digitisation initiatives and a robust regulatory system for the financial sector, Parekh said.

     "The global headwinds are likely to slow down India's GDP growth by 2-3 percentage points, but the country is more resilient than many large economies," Parekh said.

     "The country has enough tailwinds with political stability, vaccine security, food security, a robust domestic consumption-based economy, digitisation initiatives and a robust regulatory system for the financial sector," he said.

     Parekh said India's GDP growth is likely to reach 7.5 percent in the current fiscal year, higher than the 7.2 percent growth projected earlier.

     "The country has a lot of potential and we are confident of achieving higher growth rates in the future," he said.

     Parekh said India has a robust banking sector and is well positioned to benefit from the global economic recovery.

     "The country's financial sector is well capitalised and has a good credit rating," he said.

     The country's economy is also benefiting from the growth of the services sector, which accounts for over 60 percent of the GDP.

     "The services sector is growing at a faster rate than the manufacturing sector, which is a reflection of the country's strong digital infrastructure and the increasing demand for digital services," Parekh said.

     He said the country's exports are also benefiting from the global demand for commodities, such as coal and iron ore.

     "The global economy is gradually recovering and this is likely to boost the country's exports," Parekh said.

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