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THE INDIA GROWTH STORY. ‘. India Facts. Total Population - 1.18 Billion , Second in the world, one of the youngest population: 54% below 25 years 350 million strong urban and rural middle class 12 th largest Economy and 4 th Largest in Purchasing Power Parity
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India Facts • Total Population - 1.18 Billion , Second in the world, one of the youngest population: 54% below 25 years • 350 million strong urban and rural middle class • 12th largest Economy and 4th Largest in Purchasing Power Parity • Top 10 growing Economies in the World • World No.1 in receipt of Remittances ( NRI’s) • Top 10 services Exporter • Top 20 exporter of Goods • 10th largest car market • Highest English speaking population serving the services sector
Macro -Economics Economic Growth Avg. GDP growth Expected at 8% for 2012 Inflation at 9.36 percent Marginal deceleration in Manufacturing /IIP growth for the current year Significant Growth in the Service Sector, IT/ITES 36 percent growth in Exports at US $ 24.8 Billion FDI Inflows US$ 30.3 Billion & FII Inflows US$ 31 Billion Foreign Exchange Reserves US$ 320 Billion ( Till Oct 2011) Regulatory Policies in the Banking sector makes it resilient compared to other countries
Infrastructure Growth • Railways: • World's fourth largest railway network • 114,500 KM of total track • 7,500 stations • 30 million passengers and 2.8 million tons of freight daily • With more than 1.36 million employees • Power • The country is targeting a capacity addition of 62,000 megawatt in the 11th Five Year Plan between 2012-2017. • 3rd Largest coal producer, 66% power generation coal based • Scope for investment - Over $400 Billion over the next Five years. • Reliance on Renewable energy (Wind based) going forward.
Infrastructure Growth • Airports • More than 335 Civilian airports and 20 international airports • Most of the existing and future airports under PPP model • Planned investment in this sector is US$ 9.7 billion in 5 yrs • Roads: • Total length approximately 3,320,410 Km, • 3rd largest road network in the world. • Planned investment at US$ 87.2 billion
Social Infrastructure Needs • Education: • India's education system one of the main contributors to its economic growth • Much of the progress especially in Higher education, Scientific research has been credited to various public institutions. • The private education market in India is only 5% estimated to be $68 billion by 2012 • Healthcare • Needs 1 Lakh beds each for the next 20 years • It’s a US $ 77 billion industry • Industry growth at 23% annually.
Then and now, How the economy changed !!! GDP 1970-71 - INR 4.7 lakh CR (US$ 940 Billion) 1990-91 - INR 10.8 lakh CR (US$ 2160 Billion) 2010-11 - INR 48.8 lakh CR (US$ 9760 Billion) Per capita income...at constant prices... 1970-71 - INR 8,091 (US$ 162) 1990-91 - INR 11,535 (US$ 231) 2010-11 - INR 41,129 (US$ 823) With higher per income, poverty rate dipped from 65% to 35% Household Savings: 1970-71 - INR 4371 CR (US$ 8.7 Billion) 1990-91 - INR 104789 CR (US$ 210 Billion) 2008-09 - INR 12,61,332 CR (US$ 2523 Billion) This has helped finance the high tempo of economic growth
Then and now, How the economy changed !!! FDI 1970-71 - US$ 0.13 Billion 2010-11 - US$ 30.30 Billion Forex reserves 1970-71 - US$ 0.97 Billion 1990-91 - US$ 5.8 Billion 2010-11 - US$ 274 Billion Exports 1970-71 - US$ 2.1 Billion 1990-91 - US$ 18 Billion 2010-11 - US$ 245 Billion The worlds top exporting nations Telephone Users 1991 - .05 million users 2011 - 865 million users!! Mobile revolution has connected India
Then and now, How the economy changed !!! Passenger cars 1970 - 36032 cars 1990 - .18 million cars 2010 - 2.9 million cars Global auto hub...after telephone ,the most radical change Air passengers 1970 - .48 mm 1990 - 8.9 mn 2010 - 57 mn Common Man flies now, unthinkable in 1991 !!! Pay cheques got bigger!!!! BCCI fees for cricketers 1991 - 9000 per test (450 USD) - 3000 per ODI (150 USD) 2011 - 7 lakh per test (35,000 USD) - 4 lakh per ODI (20,000 USD) With liberalization came big television and with that big money for sports !
Then and now, How the economy changed !!! Expenses also went up: Monthly rental of 2 bed flat in south Mumbai 1991 - INR 40,000 ( 800 USD) 2011 - INR 2,50,000 (5000 USD) Meal for two in a five star Hotel in Delhi 1991 - INR600-800 (12-16 USD) 2011 - INR2200-3500 (44-70 USD) Haircut in Delhi ambassador hotel 1991 - 32 (64 cents) 2011 - 500 (10 USD)
Real Estate Scenario In India REFORMS REQUIRED • Dominance of Middle class in the residential sector • Average age of Home buyers - 28 yrs. • Change of attitude from “save and buy” to “buy and repay” • Dual Income families gives flexibility in buying larger homes • Easy accessibility and choice of home loan • Considered as an Asset class for Investment, Also an alternative to stock markets • Good Demand for Office space especially in South India • Key Driver of growth in office segment being IT/ITES sector • High Disposable income among young India driving organized retail business
Growing market for all segments Housing shortage of 24.7 million dwellings at the beginning of 11th five year plan. Growing urban population which is currently 29% expected to grow with huge rural to urban migration Organized retail just 4% of the overall market FDI in Real estate especially in retail presents a great opportunity for international brands like Carrefour, TESCO, Wal-Mart etc. Tier II cities Scope for Residential & Office Infrastructure Projects -Roads, Bridges, Flyovers etc PPP with Government Special Economic Zones Township Developments Opportunities
Consolidation & emergence of a few PAN India Operators Foreign players FDI Townships Tier I cities Maturing of markets Stability in prices 10-12% annualized growth Tier II cities Emergence 10-20% annualized growth Future Of Real Estate
Sustained demand for quality housing Demand for villas and themed developments Continued growth in IT & BPO segment Consolidation of large IT players into Captive Campus environment Steady growth in Retail Market Outlook
Commercial Showcase PRESTIGE TECHNOLOGY PARK UB CITY
FIABCI PRIX D EXCELLENCE 2011 WINNER INDUSTRIAL CATEGORY PRESTIGE TECHNOLOGY PARK
THANK YOU !! Presented By : FAROOK MAHMOOD, FRICS Chairman & Managing Director, Silverline Realty (P) Ltd. Vice President FIABCI World Council of Brokers. Founder President, National Association Of Realtors - India Immediate Past President, Bangalore Realtors Association-India Director, ICREA International Advisor, FNAIM