– By Mr. Prashant Chaturvedi, (VP – Sales, Marketing & Customer Care, Merlin Group)
In the slow-moving global economy, India is like a shining spot having a decent seven plus growth rate. The Indian economy is on an upward growth trajectory boasting of booming capital markets, stable annual growth rate, and flourishing foreign exchange reserves. To further add fuel to this positive growth, the Indian government has introduced several policy changes during the last few years, which eliminate the discrimination done against foreign investors. The government has introduced several other significant changes in order to increase investment opportunities in the country. The RBI, for instance, permits 100% FDI’s for the construction of roads or bridges.
Some of the major reasons why one should make investments in Indian real estate are:
- Its $2 trillion economy is the world’s fastest growing economy, making it one of the most sought after destination for business and investment purposes. Since 2014, the country’s GDP has shown a growth rate of around 7.5% annually and a similar trend is expected this year too. As per a recent data analysis, an increase of 7% is expected in the year 2018 and an average yearly growth of 6.5% from 2019 to 2023. While on the other hand, the growth rate for China has come down to 6.5% this year and it expects 6.1% gain in the year 2018. The years 2019 to 2023 are anticipated to show a growth rate from 5% to 7%. The rising real incomes of India have even left behind China. As projected, the Indian economy shall become one of the largest economies of the world by the year 2025.
- The Indian economy has a wide array of options available for its investors like energy, agriculture, consumer goods, infrastructure and pharma, etc. Its strong services sector, namely IT and business services which comprise more than half of the country’s economy, have successfully proved that exports of resources and commodities and industrialization are not the only way for rapid economic development.
- Huge savings: The country has a high savings rate sufficient enough to serve most of its investment needs and a mere 20% of the country’s total debts is sufficed from foreign borrowings. In order to upgrade India’s poor infrastructure, the government is taking necessary steps to boost foreign and private investments.
- It is all set to become one of the youngest countries of the world by the year 2020 having the average age as 29. Approximately 64%of its people will fall under the working age group. The country is expected to have a strong footing in the global economy in the next few years due to its highly educated, democratic, ethical and entrepreneurial populace. Around 1 million people are joining the labour force every month resulting in an overall increase in human potential in order to spur productivity and innovation. Having a majority of young people will encourage long-term economic growth since the youth will buy homes, make families and raise children.
- The country has a well-regulated, diversified and robust financial system that has helped it to survive in times of global financial crisis and maintain its picture of resilience, quality and transparency. It has strong corporate governance and banking sector too.
- The Indian stock market has yielded appreciable returns in the last few years and the trend is likely to continue further. The Indian investors have earned huge profits in times when many have suffered losses. Second oldest in the world, the Bombay Stock Exchange offers its investors a highly efficient, low cost, modern and well-governed environment for the prosperity of country’s extraordinary economic growth.
- The country has a considerably expanding middle class group that makes a big market for imported products and services. If the country maintains its growth rate, the average income of every household shall triple in the coming few years making India world’s fifth largest consumer economy by 2025, thus contributing significantly towards reducing poverty.
- It’s easy to file a license for a business in India. The foreigners can make investments in India as joint venture or on their own with just a few norms to be followed regarding sectors and investment limits.
So, we have seen why India is a magnate for investments and why India presents an optimistic scope for overseas investment as well.
However, it is never too late for investments India. The country’s growth story, paired with strong corporate earnings, make a lucrative investment option.