India To Sustain 10% Growth For Next Decades

DUBAI — An Indian hedge fund manager has described his country as being in a charming spot” of economic progress, telling investors in the hospitality and real estate industry that India will be able to carry on an yearly growth of ten percent for many years.
Investment level rose forty percent of the gross domestic product previous year — a jump from twenty five percent five years earlier — while employment is growing at around three percent yearly, said Surjit S Bhalla, chairman and managing director of Oxus Investments Pvt Ltd. He addressed on 3rd may the opening of the fourth Arabian Hotel Investment Conference (AHIC), where he also noted the increasing number of urban women joining the labour force — to eighteen percent in 2005 from fourteen percent in 2000.
“The hype about India is real,” said Bhalla, who manages Dh91.8 million ($25 million) in the Indian equity market through his company in New Delhi. “It is in a charming spot of growth, and this can last another decade or two.”
He told Arab investors at the conference that India lacks infrastructures, but is set to surpass China in terms of GDP growth by 2010. India had an annual growth of 5.6 % between 1980 and 2002, mainly due to its on the rise middle class.
The three-day event devoted its opening session to opportunities in India’s hospitality market, which shares many similarities with that in the Gulf region. Both markets are growing tremendously and calling for environment-friendly buildings and infrastructures. Homi S Aibara, a associate at a leading hospitality consultancy firm in India, Mahajan & Aibara, said that three hundred nine million square feet of commercial space is being planned or under construction all over Indian major cities to augment the existing one hundred seventy three million square feet.

2 Comments

  1. Posted May 6, 2008 at 4:59 am | Permalink

    India has “enormous potential in all its property investment categories”. Strong population growth, a large pool of qualified workers, greater integration with the world economy and increasing domestic and foreign investment are fuelling demand for office, retail and residential property. India’s burgeoning middle class will drive up nominal retail sales through 2010 by 10% p.a. At the same time, organised retail is becoming more important. At present organised retail accounts for a mere 3% of the total; by 2010 this share will already have reached 10%.India is the prime destination for IT services outsourcing. In the coming five years, at least 55 million m² of extra office space must be completed in the premium office segment alone. Property investments in India are not risk-free. Market transparency is far behind European or US standards. It is therefore vital for foreign investors to have a professional local partner. The lack of liquidity and upward pressure of pricing remain the main concern within the market.For more view- realtydigest.blogspot.com

  2. Posted May 16, 2008 at 4:31 am | Permalink

    Yes in the next 2 years Real estate growth will be on the high level because there are lot of things will be happen in the next two years.

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