You are here: Home » Economy & Policy » News
Business Standard

Worst behind us; India's GDP growth to turn positive in Q4: Deepak Parekh

Parekh, the non-executive chairman of mortgage lender HDFC, said residential housing sales for this quarter have gone up by 34 per cent as people are buying ready-to-move-in apartments

Topics
Deepak Parekh | India GDP growth | Indian Economy

Press Trust of India  |  New Delhi 

HDFC Chairman Deepak Parekh
Agriculture too has been a very promising story and the country is expected to have record foodgrain production of 300 million tonnes this year, he added.

Asserting that the "worst is behind us", veteran banker on Thursday said India's GDP growth will be in positive territory in the fourth quarter as demand is picking up across sectors.

"Based on a series of high frequency data, there is a distinct trend of sequential month-on-month improvement. There is a lot of catch up required but suffice to say that worst is behind us," he said at a virtual conference organised by the Canada-India Business Council.

Citing an example, he said toll collections are back to 88 per cent of pre-Covid-19 levels, e-way bills are increasing and electricity consumption has stabilised.

Parekh, the non-executive chairman of mortgage lender HDFC, said residential housing sales for this quarter have gone up by 34 per cent as people are buying ready-to-move-in apartments.

too has been a very promising story and the country is expected to have record foodgrain production of 300 million tonnes this year, he added.

On the growth outlook, Parekh said "for the first quarter we had contraction of 24 per cent but I am not too worried about that because India was in complete lockdown for most part of the quarter."

"For this (second) quarter which ended in September, we are expecting minus 5 per cent and last quarter we will be in positive territory. So I remain reasonably optimistic about India's potential," he added.

He said India is a domestic consumption-based economy and demand is set to rise in the coming months.

"We are consuming what we are producing, so demand has to increase...I am very optimistic about India story in short to medium term," he added.

Despite the shrinking economy, he said, Indian companies have raised USD 31 billion in the last couple of months, indicating there is enough liquidity in the market.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 08 2020. 22:47 IST
RECOMMENDED FOR YOU
.