Deepak Parekh, chairman of mortgage lender HDFC, on Thursday pledged to rely on the epidemic-prone economy soon, as he expects India to help India financially reach a consensus consensus ahead of health.
A 5-percent GDP contraction forecasts base-case by several pencils if the lockdown is lifted by July and returns to normal by September, and is worse than 7.5 percent in each month of lockdown, a decrease of 100 bps. it occurs. Gross Domestic Product.
“The signs of the wheels of the economy initiating the churn are evident from the following facts: The unemployment rate has come down from its peaks in May, e-toll collections are higher, such as e-way bills, digital transactions and GST collections at Rs 90,000 crore. Back to the level of.
Parekh told shareholders at the 43rd annual general meeting of HDFC, “Demand for two-wheelers and tractors has picked up, even though passenger and commercial vehicle demand remains sub-level at the onset of monsoon.”
Advising people not to be too bothered by the negative growth forecast, he said that the economy will recover to ensure that there is no long and complete lockdown in the future.
“Since independence, we have faced recession only three times – 1958, 1966 and 1980 and all three were caused by bad monsoons that affected agriculture … Today, the bright spot for us is the rural economy. A good monsoon. , Strong. Parekh said that agricultural development and government support through the Rural Employment Guarantee Scheme would enable rural consumption to fully recover.
He also discounted the impact of a lockdown-driven work-from-home culture on commercial realty, noting that many large companies are using lockdown to snap good properties when prices are low.
Listing the reasons for his optimism, Parekh said that there is a misconception that the demand for commercial real estate will decrease with choosing more from work-at-home. However, many large companies have actually acquired or leased commercial properties during this period, particularly in Bengaluru and Hyderabad.
“And there is also demand for real estate from new areas such as warehousing, e-ecommerce companies and cloud and data center parks as they seek to increase their data storage capacity.”
Regarding the housing sector, he said the underlying demand for home loans remains strong and the combination of lower interest rates, fiscal stimulus and lowering realty prices is a good thing for new homebuyers.
He called on states to offer some sweetness to homebuyers in addition to exempting temporary stamp duty to return migrant buyers to their workplaces as the hit on commercial realty is largely due to large scale reverse migration of laborers , Which is making it a challenge to resume projects.