‘Long-term India growth story’ will only get better

Very much optimistic and positive on the long-term India growth story, industry leader and economist Deepak Parekh believes it to get more attractive going forward. According to him, the consumer confidence is high in spite of ‘unpredictable and slow pace of reforms in the country.

Parekh is the chairman of HDFC, among India’s largest housing finance providers. In his annual interaction with the company shareholders, observed that he had “a strong belief in the country‚Äôs story “. He, however, expressed some concern on the delay in carrying out reforms, particularly in the realty sector and also accused a section of developers that were allegedly lobbying against several measures to make it more transparent. In a recent summary of his observations and remarks published in top newspapers, one could see his confidence about India emerging as a major economic powerhouse and a hub for global businesses. Following are some of the insightful views aired by the expert:

1. India is a complex and challenging market. It is dynamic and exciting, yet often unpredictable and slow to reform. Despite a series of recent set-backs in the Indian economy, consumer confidence has remained steady. The middle-class segment is growing, there has not been widespread loss of jobs and incomes of our target customers (home loan borrowers) have been rising.

2. As far as legislation to improve transparency in real estate sector is concerned, it once again is the unfortunate case of the proverbial one step forward, two steps back. Various attempts have been made to revive the Real Estate (Regulation and Development) Bill. The case for a real estate regulator remains compelling to protect home buyers and ensure transparency on the part of developers.

3. There is no denying how imperative it is to cleanse the real estate sector which has been characterized by opaqueness, speed money, vested interests and complete lethargy on part of the authorities in granting approvals. Parekh also stressed on the need to speed up the grant of approvals and setting up of a single-window mechanism in the sector.

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