In a comprehensive address on India’s economic outlook, former HDFC Chairman Deepak Parekh offered a balanced assessment of India’s growth trajectory, emphasizing the nation’s resilience amid global challenges. Speaking at the event ‘India’s Roadmap to 2030 ’ Organised by Indian Peoples Forum: Business and Professional Council– UAE, Parekh highlighted India’s projected growth rate of 6.4% for 2025, which stands at twice the global average.
Parekh acknowledged recent economic headwinds, noting that combined revenue growth of 3,000 listed Indian companies had slowed to 8% in the second quarter. However, he emphasized this slowdown is cyclical rather than structural, with growth expected to rebound to 6.7% in the latter half of the fiscal year.
Parekh identified key areas requiring attention, including the need for affordable housing incentives and infrastructure development. He noted India’s relatively low mortgage-to-GDP ratio of 11% compared to other Asian economies, suggesting significant growth potential in the housing sector. The country requires an estimated 110 lakh crore rupees for infrastructure development across various sectors.
Looking ahead, Parekh expressed confidence in India’s banking sector, citing manageable non-performing assets and improved profitability among public sector banks. He also noted the growing sophistication of India’s financial markets, with domestic institutional investors now outpacing foreign institutions and India accounting for 33% of global IPOs in 2024.
The Consul General of India at Dubai, Shri Satish Sivan underscored the strengthening India-UAE relationship, pointing to bilateral trade reaching $85 billion and the growing Indian diaspora in UAE, which now exceeds 3.9 million people. He highlighted several milestone achievements, including new energy agreements and the implementation of digital payment systems between the two nations.
President of the Indian Peoples Forum UAE, Shri Jitendra Vaidya emphasized India’s current position as the world’s fifth-largest economy with a GDP of $3.89 trillion, highlighting the nation’s digital transformation and renewable energy initiatives. Under Prime Minister Narendra Modi’s leadership since 2014, he noted, India has significantly expanded its global influence.
Despite challenges including food-related inflation and slowing public sector capital expenditure, Parekh maintained that India’s fundamentals remain strong. As NVIDIA CEO Jensen Huang recently observed, he concluded, India stands at a crucial juncture to transform itself from the world’s back office to its front office, particularly in emerging sectors like artificial intelligence.
