While stating that a 10 per cent GDP growth was certainly achievable, Parekh, however, said he would not "hazard a guess" on the time frame for achieving a double-digit growth.
"I try and think back and I cant recall any other instance than now when India had rising stock markets, falling oil prices and a stable, majority government all at the same time.
"These are exceptionally good conditions to once again lay the foundation for the much-aspired 10% GDP growth for India," he said while speaking at the ISB Capital Markets Conclave here.
Parekh, known for his candid views on issues related to Indian economy and markets, said it is "suffice to say that a 10 per cent GDP growth will not happen without extensive judicial, electoral, police, labour and land reforms, along with financial sector reforms."
"At this juncture, much needs to be done to even attain a 6.5-7 per cent GDP growth rate. "But yes, the picture had changed dramatically for India," he said, while listing out three fundamental changes including improved confidence with the government being perceived as being able to deliver on growth and what is driving the present euphoria.
On the other two changes, he said: "India has a Prime Minister who leads from the front and key macro fundamentals are working in Indias favour".
For the current fiscal, Parekh said the estimated GDP growth rate was 5.5-5.9 per cent, while adding that India has been performing significantly better than many other emerging markets.
He said the research analysts are already describing India as being on the top among the BRICs and the "best house" in a bad neighbourhood.
"And to borrow the latest buzz phrase from Bill Gross, India is considered the 'cleanest dirty shirt' amongst emerging markets," he said, while adding that India has become the toast of the FII party as it is perceived as 'less of a mess' in comparison.
Parekh said that FIIs have invested $37 billion so far this year, including around $14 billion in equities and debt inflows of $23 billion.
"And while another new high of 28,000 has been touched, brokerage houses have long since sent the Sensex forecast sky high," he added.