HDFC Chairman Deepak Parekh says interest rates will rise amid global headwinds where the West is facing problems with an abrupt policy shift to curb inflation after witnessing years of quantitative easing. It upheld the RBI’s decision to suspend the cycle.
Updated April 8, 2023 | 3:55 PM
Deepak Parekh, Chairman, HDFC
Photo: PTI
According to ANI’s report, Parekh said, “In India, we are fortunate that the rate hike cycle has finally come to a halt based on yesterday’s announcement.”
Speaking at the SP Jain Institute of Management and Research’s Silver Jubilee celebrations for management programs for family businesses, Parekh explained the shift from years of quantitative easing and negative interest rates to a sharp rise in interest rates to fight inflation. I emphasized that sudden change is one of them. of the key global problems facing much of the Western world.
Furthermore, Parekh said, “global cooperation is most needed to solve common and pressing problems such as global supply chains, global warming, cyber threats, money laundering, data privacy and responsible use of artificial intelligence.” There is a great deal of mistrust among nations at this particular time, and a few others.”
Parekh stressed that while India is not immune to global shocks, it has shown better resilience than many other large nations. The country’s GDP growth may slow down due to global headwinds, but there are a number of tailwinds, including political stability, vaccine safety, food security, and a strong domestic consumption-based economy. He also noted that India has made great strides in its digitalization initiatives and has a strong regulatory system for the financial sector.
The HDFC chairman also spoke on India’s entrepreneurial spirit, highlighting that the country has the third largest number of start-ups in the world after the United States and China. Parekh advised family businesses to avoid suing each other in court, saying lawsuits would take years, drain wealth and leave generations with the same problems. Instead, he suggested that both parties should choose an arbitrator (a person they trust with each other) and sign an affidavit agreeing to abide by the arbitrator’s decisions.
Parekh concluded his speech on a positive note, saying that being young in India today presents an exciting opportunity to take advantage of the entrepreneurial opportunities unfolding. The event will highlight the need for global cooperation to address critical issues such as global supply chain, global warming, cyber threats, money laundering, data privacy and responsible use of artificial intelligence. it was done. Despite the challenges, Parekh believes India has the potential to succeed with the right policies and initiatives.
