Indian Economy indicators that make Indian Real Estate a promising investment- a perspective for homebuyers in Hyderabad!

As an investor, the Economy of a country tells us whether or not it is safe to invest in a country in the first place! Whether it is Foreign Direct Investments, or Business investments, the health of the Economy of the country an investor thinks about matters above all else!

Measures like Gross Domestic Product (GDP), the Stock markets, Unemployment rates, Consumer Price Index (cost of living changes), and consumer spending are some of the few dominant indicators that an investor considers before investing.

So, it is safe to say that if a country does well in broad indicators, then the overall future of the country’s economy would make it a safe bet for an investor’s money.

Going by the same logic, if the economy is on the growth path, there is a very strong reason to invest in real estate as well.

The intent of the article is to provide a broader sense of direction and clarity to home buyers across India, and especially Hyderabad, about the major trends of the Indian Economy.

[Source- https://pib.gov.in/ ]

The reason why a home buyer in Hyderabad can confidently invest in a residential property in Hyderabad is because of all the right reasons! The Indian Economy indicators tick all the right boxes- India as a safe country to invest, in and Hyderabad as a vibrant city for investors across sectors!!

[Source- https://econ.economicshelp.org/ ]

Indian Economy Indicators- Trends, and facts that help us gain a clearer perspective!

• India is the fastest-growing economy in the world
• India will be amongst the top 3 economic powers in the next 10-15 years
• A robust democracy and partnerships in India are a matter of great pride for Indians
• Indian GDP-
  • India’s GDP is Rs. 232.15 trillion (USD 3.12 trillion) from 2021-to 2022
  • India is No. 3 in the number of Unicorns produced. What is a unicorn? Ans: A unicorn business is a startup that’s valued at over $1 billion
  • Over 83 unicorns from India are collectively valued at US$ 277.77 billion
  • By 2025, India is expected to have 100 unicorns. More Indian Unicorns will also mean more jobs in India
  • Indian Unicorns alone will create over 1 Lakh direct jobs as per the Nasscom-Zinnov report titled ‘Indian Tech Start-up’

[Source- https://pib.gov.in/]

• Indian Employment-
  • India is looking at an increasing rate of employment growth by creating 9 crore non-farm jobs between 2023 and 2030s
  • This will fuel productivity and economic growth in India as per McKinsey Global Institute
  • If the net employment rate in India grows by 1.5% per year from 2023 to 2030, India will be poised to achieve an 8-8.5% GDP growth during this time period
• As per the Department of Economic Affairs, foreign exchange reserves in India reached the US$ 634.287 billion mark by the end of January 2022. This is a reasonably healthy reserve to hold

[Source- https://pib.gov.in/]

Recent development trends of the Indian Economy Indicators

• There has been an improvement in the economic scenario in India despite the pandemic
• Investments have increased across various sectors of the economy
• The private equity-venture capital (PE-VC) sector saw investments worth US$ 6.8 billion across 102 deals in November 2021 alone. This is 42% higher than November 2020
• Indian exports between April 2021 and December 2021 stood at US$ 299.74 billion. This is almost 50% more than what it was last year during the same time period
• The Manufacturing Purchasing Managers’ Index (PMI) in December 2021 in India stood at 56.4. This is healthy for India. What is PMI Index? Ans: It’s an indicator of the economic health of the manufacturing sector, the Purchasing Managers’ Index is based on five major indicators viz. (1) new orders, (2) inventory levels, (3) production, (4) supplier deliveries and (5) the employment environment
• GST revenue collection stood at Rs. 1.38 trillion (US$ 18.42 billion) in January 2022. This is a 15% rise more than what was collected one year back
• FDI equity inflow in India stood at US$ 547.2 billion between April 2000 and June 2021. A very healthy trend
• India’s Index of Industrial Production (IIP) for November 2021 stood at 128.5 as against 126.7 in November 2020. What is IIP? Ans: The IIP indicates the performance of various industrial sectors of the Indian economy. It is calculated and published by the Central Statistical Organisation (CSO) each month
• Consumer Food Price Index (CFPI) – Combined inflation was 2.9% in 2021-22 (April-December) against 9.1% in the corresponding period last year. These are healthy trends. What is CFPI? Ans: Consumer Food Price Index (CFPI) is a measure of change in retail prices of food items consumed by the population. Under the CSO’s CFPI, the index gives food price level changes for rural, urban, and all India basis.
• Consumer Price Index (CPI) – Combined inflation was 5.20% in 9 months of 2021-2022 (i.e. April-December). This was lower than 6.6% in 2020-21 (during the same time)
• Foreign portfolio investors (FPIs) invested Rs.50,009 crore (US$ 6.68 billion) in the year 2021. A healthy indicator yet again!
• The wheat procurement in Rabi 2021-22, and paddy purchase in Kharif 2021-22 would include: (1) 1208 lakh (120.8 million) metric tonnes of wheat and paddy from 163 lakh (16.7 million) farmers, and (2) direct payment of MSP value of 2.37 lakh crore (US$ 31.74 billion) to farmers’ accounts

[Source- https://pib.gov.in/ ]

These Indian Economy indicators help us extrapolate the trends to the Indian Real Estate sector, especially with a clear conviction and inclination for investing in the city of Hyderabad as well.

The home buyers, especially in Hyderabad, can safely invest in a residential home with all the Economic indicators at the country-level pointing in the right direction!

“A strong economy causes an increase in the demand for housing; the increased demand for housing drives real-estate prices and rentals through the roof. And then affordable housing becomes completely inaccessible.”

– William Baldwin

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To know more about “Real Estate Investment: A Perspective For Indian Investors & Home-Buyers [Part-I]!”. Click here!