Deepak Parekh: India is in a bright spot because we have political stability

Deepak Parekh with US Secretary Timothy Geithner at a Confederation of Indian Industry meet in 2012. (Image source: U.S. Department of the Treasury via Wikimedia Commons)

Deepak Parekh, the Chairman of Housing Development Finance Corporation told Moneycontrol in an exclusive interaction that he has never been more optimistic about India that right now.

"I've been on record several times stating that I have never been as optimistic about India as I am today,” Parekh said in an interview. “The world is going through a tough time and has headwinds that will impact us a little in India, but as a country, India seems to have more tailwinds.”

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India has to seize the opportunity it has for the next couple of years because China's growth is slowing down as is global growth, the HDFC chairman said.

While the world economy is expected to grow just 2 percent, India is expected to grow by at least 6.5 percent or more, he added.

Also read: Despite slowdown India will be among fastest growing world economies: Deepak Parekh

Parekh’s comments reflect the commentary by global and domestic agencies that have hailed India as a bright spot in a slowing global economy.

“World Bank, think tanks and foreign investors are all saying that India is a bright spot. We are in a bright spot because we have political stability,” he added.

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The HDFC Chairman’s remarks come ahead of the presentation of India’s Union budget on February 1, where Finance Minister Nirmala Sitharaman is expected to unveil more reforms to boost the medium-term potential of the economy.

Also read: When and where to watch Nirmala Sitharaman's Union Budget 2023

Earlier this month, the World Bank slashed its growth projections for most countries, warning that new shocks could tip the global economy into a recession.

Global gross domestic product will probably increase 1.7 percent in 2023, about half the pace estimated in June.