HDFC Chairman has said that the economic slowdown in India which has been due to weakness in consumption demand is temporary in nature and will pick up at the onset of the festive season.
According to data released by the Central Statistics Office (CSO),India’s quarterly GDP growth has declined to 5.8% in the January-March 2019 quarter dragging down the full year growth to a five-year low of 6.8%.
He also said that the demand for affordable housing remains adequate as it has been supported by the government’s flagship credit-linked subsidy scheme and incentives provided to developers to increase the supply of affordable homes.
However,he said that the challenge is re-instilling confidence in lenders to support growth since they have limited funding from non-banking finance companies(NBFCs) due to tight liquidity situation.
Further,the International Monetary Fund(IMF) has also cut India’s growth rate projection for FY20 to 7% from 7.2%.Ratings agency CRISIL has also revised its growth estimate to 6.9% from 7.1%.