Indian economy is expected to rebound faster than predicted, say global agencies. Global rating agency Moody’s Investors Services and brokerage firm Barclays lifted India’s growth estimates, following a sharp recovery in the country thanks to the festive season. While Moody’s had earlier predicted India’s annual growth forecast at minus 11.5 percent, it has revised it to (-) 10.6 percent. The revision came soon after the government’s latest Atmanirbhar Bharat 3.0 stimulus package.
The new measures that were announced amount to Rs 2.65 lakh crore. Moody’s praised the government’s measures and said they will help boost competitiveness in India’s manufacturing sector and help create more jobs. It was Finance Minister Nirmala Sitharaman who announced a fresh round of stimulus to help pull the economy out of the contraction. She added that the central bank recently predicted a strong likelihood of the Indian economy returning to positive growth in the third quarter of the fiscal year 2020-21 and that recent economic recovery was not due only to pent-up demand.
Moody’s has also raised the growth forecast for the next fiscal year FY 2021-22 from 10.6 percent to 10.8 percent.
Positive consumer sentiments
Consumer sentiment has started to get a little better, said a report by the Boston Consulting Group, India (BCG). The spending sentiment has improved across many categories.
While essentials, health, in-home entertainment continue to be winners, there is an uptick in sentiment across many semi-essentials like personal care, apparel, and more.
The demand for home-loans is also on the rise. Leading financial institutions are seeing demand picking up for home loans and expect the momentum to gather pace in the coming months aided by low-interest rates and RBI’s announcement on rationalizing the risk weights for all new housing advances until March 31, 2022 and linking them to the loan-to-value (LTV).
The new-home-loan market is showing encouraging signs of recovery in the run-up to the festival season, though the commercial realty market is likely to remain subdued for some more time.
Home sales
Home sales, by value, in the country rose 134 percent to ₹29,731 crores in the September quarter from ₹12,694 crores in the preceding three-month period, according to Anarock Property Consultants data.
“The results are visible in September figures from the registration offices in Maharashtra. Buyer sentiment has improved. While the conversion into actual sales is taking a tad longer, it’s happening,” said National Real Estate Development Council president and Founder, MD of the Hiranandani Group, Niranjan Hiranandani.
Chennai-centric
The slew of MoUs signed by the TN government, inviting investors into the State, will drive demand for residential spaces in Chennai. Oragadam, near Chennai, is the biggest beneficiary. The neighbourhood has seen industrial growth over the last few months in spite of the pandemic and is one of the most sought-after locations for homebuyers and expats who work in nearby companies. Popular for world-class living standards, Hiranandani Parks, Oragadam is a sports township that has transformed the industrial belt as a sought-after residential neighbourhood too. The 360+ acre integrated township offers a luxury lifestyle with an abundance of amenities and large open green spaces. Visit www.hiranandaniparks.com and request for a safe & exclusive site visit to experience the township.