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REAL ESTATE INVESTMENT IN INDIA: AN INSIDE STORY OF EMERGING INDIA
From war-ridden nations to the staggering downfall in developed economies, the headwind exposed the world to a whole new economic downturn. This did not only peril their future but also forced them to look for a safer place to harbor their investment and business. On one hand, the world is experiencing a war-induced resource crisis and trade difficulty amid France, Ukraine, and Israel-Palestine, and on the other hand, major developed economies are facing a harsh decline in their GDP. The looming uncertainty poses new challenges for investors and businessmen to secure their investments and businesses. Major growth-driven sectors of an economy have been adversely affected by this crisis. However, despite the various economic upheavals, countries like India are turning out to be major investment and business destinations. The majority of changes are taking place through the strengthening of infrastructural facilities and services. Therefore, it becomes important to understand how real estate investment in India can provide an excellent investment opportunity for you.
Need for strong infrastructural development: Infrastructure is a strong foundation for any economy, and India is not an exception. The country that has been facing a lack of proper infrastructure for a long time has not only done commendable work in this direction but also set an example for others. Taking lessons from major world crises such as the subprime crisis of 2007, additional precautions have been taken to maintain the momentum of a demand-driven economy. Besides, with regular improvisation and government support, growth has been ascertained. In the recent interim budget, the government increased the fund allocation by 11.1%, which accounts for 11.11 lakh crore. 3.4% of the total Indian GDP, in addition to the Union government, has also initiated providing 1.3 lakh crores to states as long-term debt for development. In the last few years, the government’s investment pattern further strengthened the logic that the Indian real estate sector should not turn out to be a momentum fab but rather a well-planned vision that makes real estate investment in India a safe and growth-oriented destination.
Growth projection: investment is not merely an option but a thoughtful strategy. That is why it becomes very crucial for an investor that his investment be in the right direction. In terms of current prospects, investment in India proves to be a much better option than any other nation. It is worth noting that the growth forecast report of the IMF estimated worldwide GDP growth at 3.1% for the year 2024, whereas India is expected to have 6.7% growth. In comparison to other countries like China, the growth rate will be confined to 4.6%, Russia to 2.6%, and Latin America and the Caribbean region to 1.9%. Even India’s leading government bank, SBI, has expressed confidence in the country’s growth and is expected to maintain it by 7.4%. Besides, the United Nations report further strengthens this statement that the Indian growth rate will be much higher than any other nation. According to a UN report, India will experience growth as high as 6.2%, surpassing the growth of other major economies such as America, Europe, Latin America, and East Asian countries. In the light of the above reports and data, we can clearly say that India is writing a new chapter of its success, and it’s not merely an investment destination but has immense potential for development.
Investment Pattern: India’s entry into the top 100 club is not just a hallmark of the ease of doing business but much more. From a mere 45.15 billion dollar FDI inflow for the year 2014–15 to becoming a 953.143 billion dollar FDI inflow, it indeed shows investors faith and interest in the economy. During the years 2022–23, top 5 countries like Mauritius (24%), Singapore (23%), the USA (9%), the Netherlands (7%) and Japan (6%) have contributed the FDI inflow to India. According to the world investment report of UNCTAD, India has become the third largest recipient of FDI for the year 2022 for Greenfield projects. Apart from economic stability, regularity framework, sectoral policy implementation, and political stability, the factor that has been more focused and prominent is infrastructure development. Besides, the automatic approval of 100% FDI in construction development has given further impetus to this sector.
Conclusion: India’s astonishing growth is evident enough to validate its efforts and emerge as a stronger and more resilient nation. Its growth and success are not just a chapter in the global economic landscape but show tremendous potential to become a global leader. Investors who are looking for a safe and growth-oriented destination can find India to be a real investment destination. Besides, real estate investment in India can play a vital role in providing a sustainable and prosperous prospect for them.
