India’s GDP growth is expected to slow down due to global headwinds, but the nation is more resilient than many other major nations, according to Deepak Parekh, chairman of HDFC.
Parekh said at an event hosted by SPJIMR’s Centre for Family Business and Entrepreneurship (CFBE) that India has enough advantages due to political stability, vaccine security, food security, a strong domestic consumption-based economy, digitisation initiatives, and a strong regulatory system for the financial sector.
While having shown to be more robust than many other big economies, India is not immune to global shocks. The global economic headwinds would undoubtedly lead India’s GDP growth to slow down, he said.
He said that although “many investors still have enough of dry powder for strong, original ideas, the days of capital burn and high valuations are behind us,” they are no longer applicable to startups.
The favourable startup climate in India has led to a boom in entrepreneurship, and behind the US and China, India has the third-highest number of companies.
“Geopolitics has recently taken precedence over geoeconomics, with consequences for commerce, services, technology, capital flows, and even labour force mobility.
At a time when international cooperation is most needed to address urgent problems like global supply chains, global warming, cyber threats, money-laundering, data privacy, and the responsible use of artificial intelligence, among other things, he claimed that there is “immense mistrust” among nations.
Parekh said that the abrupt shift from years of quantitative easing and zero interest rates to a quick increase in interest rates to fight inflation has been the other major global concern facing the Western world.
“This has led to a crisis in the cost of living in many wealthy nations. According to yesterday’s (RBI policy) pronouncement, India is fortunate to have finally seen a lull in the cycle of increasing interest rates, he said.
The investment in the next generation’s education, according to Parekh, has been the most important development in family companies as of late.
“This is the greatest game changer there is. Scale, vision, professionalism, and diversity in business have all benefited from improved education. More education leads to a greater comprehension of the shifting market realities, which aids family companies in remaining relevant, he said.
Nitin Gadkari, Minister of Road Transport and Highways, who was present at the occasion, said that the nation needs educational and research institutions that can direct and provide young with the proper vision.
The minister said, “There is a need to create and work on such technologies that may assist minimise imports in order to make the nation completely self-reliant.”
Gadkari advised young businesspeople to concentrate on tribal and rural communities, which have enormous potential.
“The rural and tribal regions have an abundance of raw resources that may be used to use technology to minimise imports. I urge businesspeople to use technologies that will lessen our reliance on imports and contribute to the production of wealth and employment, Gadkari said.
