HDFC Bank Chairman Atanu Chakraborty warns of global risks, urges pvt sector to do ‘heavy lifting’

Atanu Chakraborty

HDFC Bank Chairman Atanu Chakraborty has cautioned that global economic uncertainty, slowing growth, geopolitical tensions and trade disruptions could weigh on funding conditions, market stability and the global economic outlook.

Speaking at the bank’s Annual General Meeting (AGM) on August 8, he said the IMF’s forecast of 3 percent global GDP growth for 2025 “does not look robust.”

His comments come amid the recent imposition of 50 percent tariffs by former US President Donald Trump on certain categories of imports on August 6.

Chakraborty said such tariff actions risk undermining the multilateral trade framework, disrupting established supply chains and triggering retaliatory measures, which could amplify volatility in global commodity prices.

Despite these headwinds, he said India remains one of the best-performing major economies.

He mentioned that GDP growth slowed to 6.5 percent in FY25 from an average of 8.8 percent over the previous three years due to the base effect, softer urban consumption, modest fixed investment and weaker manufacturing output. Rural demand, buoyed by a favourable monsoon and strong harvest, alongside robust growth in construction (above 9 percent) and services (above 7 percent), provided a counterbalance, he said. The Reserve Bank of India expects GDP growth to hold at 6.5 percent in FY26, supported by low inflation, government infrastructure spending and strong housing demand.

However, he added, the private sector must “do the heavy lifting” by innovating in product design, improving cost efficiency and strengthening delivery systems, rather than waiting for demand to revive on its own.