Global investors have poured back into India following the strong election victory results for the UPA.
Some commentators feel the Indian economy can now recover with 7-8% GDP growth in the next few years. While investors were earlier chasing value, now they will be chasing growth. The mindset has changed and there is lot of money waiting to come into India,” said Seturam Iyer, chief investment officer at Shinsei AMC.
Stock broker Rakesh Jhunjhunwala said: “This is a game-changer for India.” Bharti Airtel Chairman Sunil Bharti Mittal said: “India has much to cheer about finally.” Their optimism was shared by almost everybody, with ITC Chairman Y C Deveshwar expecting the return of double-digit growth in the not-too-distant future.
With investors in stock markets in developed nations such as Australia, France, the US, the UK and even Switzerland registering 1-6% losses or at best, flat gains in 2009, experts believe India’s outperformance will bring in more FIIs, hedge funds and big institutional investors.
Indian real estate players are equally relieved. “I don’t see any concerns about the economy including real estate now. UPA will take care of the problems,” said Parsvnath Developers Chairman Pradeep Jain. So is this the bottom for the Indian property market and the return to strong growth?
We simply don’t know when, but the new stable government will enable major reforms to be passed and should be very positive for the Indian property market with greater stability is expected sooner rather than later.
What do you think, please add your comments.
Tags: GDP growth in India, Indian elections, Indian Real Estate, property in India
May 27th, 2009 at 1:41 am
There is nothing to worry for real estate as the newly installed govt. has assured builders to take care of their problems. Yes, now focus would be more upon the low priced units.