New Delhi: Amid rising concerns over the country's economic growth prospects, industry leader Deepak Parekh on Monday said that the only thing holding India back at this juncture is "lack of political will" and investors can no longer be placated by talks of "long-term fundamentals".
On a day when global rating agency S&P warned that India could lose its investment grade rating and risked being downgraded to junk status, financial services giant HDFC's Chairman said in a letter to shareholders that India Inc is currently suffering from "self-inflicted traumas that India has brought upon itself".
"Economic hardships can always be overcome. What India needs to do to set itself back on course is known to all. Legislations that can re-instill confidence into the markets are ready and waiting for the requisite nod from Parliament," he added.
"As a result of the self-inflicted traumas that India has brought upon itself, some companies are caught in the dilemma of giving up the 'billion opportunity'.
"India has always been a country where investors need patience, but the rewards have been visible. Though there are deepening doubts about India's ability to manage its future, companies with a long-term vision still believe that the risk of not being in India is greater than the risk of being in India," he added.
Parekh, who had previously also raised concerns over slow pace of economic reforms and lack of required policy measures, however was optimistic that "India's defining moment has arrived and we should not miss out on the economic opportunities that urbanisation brings."
"A few bold policy measures will go a long way in changing the lives of a billion Indians," he noted.
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