Deepak Parekh: India is showing early signs of sustainable revival: Parekh

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Mumbai: India With higher growth in non-oil and non-gold imports seeing early signs of a sustainable economic revival, reflecting pick-up in domestic demand, Chairman Deepak Parekh Told the shareholders at the annual general meeting (AGM) of the insurance company.

“Despite the high volatility in the global environment, we remain optimistic about the resilience of India’s economy,” Parekh told shareholders. “Domestic economic activity is driven by increased private consumption and increased discretionary spending. Besides, rural consumption is expected to be supported by forecast of normal southwest monsoon this year.

However, the company remains cautious about the effects of current geopolitical tensions, rising commodity prices, slowing external demand, supply disruptions, capital outflows, high inflation in emerging economies and withdrawal of monetary accommodation in developed economies.



Factors such as low market penetration, favorable demographics and increasing awareness among consumers about the need for insurance are quite unfavorable for the industry.

“Our endeavor is to continue to expand new business sources and introduce new products while ensuring proper risk management and business quality,” Parekh said. “India’s demographic dividend not only offers a huge opportunity but also a huge challenge to reach and serve customers in every nook and corner of our country in an affordable manner. In view of this, I have no doubt that technology will be an important aid for life insurance companies to achieve their aspirations.”

He said that India’s insurance penetration and density are still well below the global average, which means that with the increase in GDP per capita, there is immense potential for sustained regional growth.

We remain optimistic about the resilience of India’s economy despite the high volatility in the global environment

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