India being bypassed as an investment destination: Deepak Parekh

India's image has taken a major beating internationally, says Deepak Parekh, HDFC chairman. In an exclusive interview to NDTV's Shweta Rajpal Kohli, he says India is being bypassed as an investment destination. "It is not on the radar of many multinationals. The global CEOs tell me India first needs to sort its issues out. The trouble is, in India, everything is grey, nothing is black and white," Mr Parekh says referring to the lack of transparency in taxation and FDI or foreign direct investment policies. (Watch) He says India needs to provide clarity and transparency in policies to attract foreign investment. "Global investors don't know how long approvals will take - one month or one year." Mr Parekh, however, says the blame lies not just with the government. "Vested interests are also stalling the entry of new players and foreign investment in the country. For every new investment, there is a vested interest. Political influences are used to stall the entry of new players. Different vested interests are pulling different strings. If a new airline wants to come, other airlines will try to stall its entry." Talking specifically about opening up the insurance sector, Mr Parekh said, "Some groups are canvassing in Delhi against opening up of insurance sector." Allowing FDI in insurance alone can help India get over $10 billion, he says. When asked about the slide of the rupee in August he said, "The fall of the rupee was not justified. The rupee had over depreciated due to remarks by the US Fed over tapering". Mr Parekh says delay in tapering of the $85 billion stimulus has now given India more time to plan for its consequences. "Its highly unlikely that the rupee will tank to 70 to the dollar levels now," says Parekh. He, however, believes the worst is over for the economy. "Optimism has returned over the last 3-4 months. The worst is behind us and we're bracing for better times." Mr Parekh believes the number of small steps taken by the government will start showing results soon. "The government has pressed the accelerator; there is a changed momentum in Delhi." While the US government shutdown is unlikely to impact India adversely, Mr Parekh says the biggest weakness is India's dependence on global crude oil. "We need to find more oil, gas in India." Speaking on recent political developments over the Ordinance on convicted lawmakers, Mr Parekh said," I admire Rahul Gandhi for his stand (on the ordinance). The ordinance is not in the country's interest. No one wants criminals to run the country." He went on to say, "I personally felt the ordinance was wrong," adding, "the (Congress) party should have debated the decision more. But the withdrawal of the ordinance should not be seen as the failure of one individual". When asked whether Gujarat's model of growth can be replicated at the Centre, Mr Parekh says "Gujarat model is all about enabling faster decisions. We need faster decision making at the Centre." Talking on real estate prices, the HDFC chief says commercial rentals and prices have seen a drop of over 30-40 per cent over the last few months. But there is only a marginal drop in prices of residential properties as there is still genuine demand. "The desire of every Indian to own a home is helping developers to hold up prices."

India being bypassed as an investment destination: Deepak Parekh

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