Global headwinds are a major challenge for India, especially as its economy is emerging from the pandemic. However, it has also been seen that India is more resilient than many large economies, a sentiment echoed by HDFC chairman Deepak Parekh at a recent event.
He explained that India was blessed with tailwinds such as political stability, vaccine security, food security, a robust domestic consumption-based economy, digitisation initiatives and a strong regulatory system for the financial sector. Despite the global shocks, India is better positioned to navigate the slowdown in GDP growth. As for startups, Parekh mentioned that investors are still seeking good, innovative ideas, albeit with more realistic valuations.
Moreover, entrepreneurship has gone through the roof with the third largest number of startups in the world after the US and China – a sign of India’s business potential. At the same time, geopolitical tensions have complicated the trades, servicers and even labor mobility, while the Western world is grappling with sudden increases in interest rates. Meanwhile, India finally got the much-needed relief in the form of a pause in the rising interest rate cycle.
HDFC Chairman Parekh also discussed the need for education and research institutes to guide and provide proper vision to the youth. Roads Minister Nitin Gadkari seconded the same and encouraged entrepreneurs to dive into the rural and tribal areas, which have immense potential that can be unlocked with technology to reduce imports.
In conclusion, despite its present challenges, India shows a fair amount of resilience compared to many economies, thanks to its political stability, robust domestic consumption-based economy, digitisation initiatives and financial regulatory system. This can be complemented by the efforts of the government in promoting education and research and the private sector’s focus on tapping the immense potential of the rural and tribal areas.
