India will be the third largest economy of the world till 2030. Given today the economy of India ranks Fifth with a size of $3.7 Trillion. It is behind the USA($27 Trillion), China(around $17.7 trillion), Germany($4.4 Trillion)and Japan($4.2 Trillion).
Policy Driving Business Expansion
S&P Global has claimed in its Global Credit Outlook 2024 Report, that India is going to be the Third Largest Economy soon. The Report is titled ‘New Risks, New Playbook.’ Previously the S&P Global Market Intelligence reported that the Indian economy which was $3.5 Trillion last year will go as high as $7.3 Trillion by 2030. This rise in the GDP will take India’s GDP above Japan. India will be the Second largest economy in Asia.
The Prophecy of the PM.
Prime Minister Modi has constantly been saying that India will soon become the Third Largest Economy of the World. This Year during the 20 Years’ Celebration of Vibrant Gujarat Global Summit, Prime Minister Narendra Modi Addressed the nation and said that “ we are standing at a turning point from here India will become a global economic powerhouse. This is a guarantee from Bharat to the world and from me to you all. You are going to see within your lifetime that Bharat will be one of the top 3 economies of the world.”
But the agency’s biggest doubt is if India is going to be the next manufacturing hub in the world or not. The major thing is to break the barrier and create a world-class logistics framework that will further transform India from a services-based economy to a manufacturing-based Economy. Another major roadblock is untapped labour potential. India needs to bring more labourers into the mainstream which is possible by upskilling the labour to skilled labour. The lack of female participation in the labour force is also a major drawback. The agency mentioned that progress in these two areas can help realise India its true Demographic Dividend.
A boom in the economy would also catalyze the growth of Startup culture in India. The boom in the digital market of India will also be helpful for the boom in the economy. India’s growth is quite stable and fast in the Automobile Manufacturing sector, India is also planning to bring investment for infrastructure development, innovation and R&D, especially with EVs. Apart from Mexico a lot of countries are going to benefit from the reconstruction of the global supply chains. The countries which have stable and promising trade ties with the US like India and Vietnam will also get attention in this area.
The agency has expected that India will grow at 6.4 % this fiscal year, which is higher than last year by 40 basis points. The same growth rate is going to continue for the next year that is FY25, but earlier it was projected to be 6.9%. For FY26 and 27, the respective growth will be 6.9% and 7%.
Impact of this growing economy On the Real Estate Market.
India’s growing economy will also have a profound impact on the real estate market, transforming it into a dynamic and resilient sector. The surge in economic activities, rising income levels, and urbanization is fueling a robust demand for residential, commercial, and industrial spaces. As the middle class expands and disposable incomes increase, the appetite for homeownership grows, propelling the housing market. Additionally, the expanding corporate sector has triggered a surge in demand for commercial spaces, especially in prime business districts. Foreign direct investments and government initiatives further amplify the growth, fostering infrastructural development and smart city projects. Despite occasional market fluctuations, the overall trajectory remains upward, with real estate emerging as a cornerstone of India’s economic development. This symbiotic relationship between economic growth and the real estate market underscores the sector’s resilience and pivotal role in shaping India’s evolving landscape.