India’s 2017 unemployment rate
India’s annual inflation rate as
of December 2017
Steven Wyble is online content editor at Scotsman Guide Media.
Reach him at (800) 297-6061 or email@example.com.
Once a poor, slow-growing country, India’s economy today is expanding at a rapid clip.
The country is on track to become the world’s fifth-largest economy in 2018, according
to forecasts from the International Monetary Fund. It already boasts the third-largest
gross domestic product (GDP) in terms of purchasing-power parity.
With a population of around 1.3 billion people, India is the second-most populous
country in the world behind China. Its population is expected to surpass China’s by
2024, according to the United Nations.
Despite weakened GDP growth early in the current fiscal year, India’s economy is projected to expand at an annual rate of 7 percent or more over the next three fiscal
years, according to the World Bank. Inflation is projected to remain stable, and the
dollar-rupee exchange rate has appreciated.
One of the difficulties facing the country in the near future is reinvigorating private
investment, which has been hampered by domestic challenges, including the
corporate debt overhang and regulatory and policy obstacles, as well as increasing
U.S. interest rates, according to the World Bank. Another obstacle is rising international
oil prices, as India relies heavily on energy imports.
Additionally, the country’s budget includes deficit spending accounting for 3. 3 percent
of its GDP, exceeding a previous target of 3.2 percent, finance minister Arun Jaitley said
in a budget presentation this past January. Jaitley also announced that the country is
planning to spend billions of dollars on agricultural, infrastructure and social programs.
The country boasts a strong office sector, with flexible-workspace leaders such as
We Work and Regus leasing more than 100,000 square feet of office space in 2017, according to Colliers International. Competition between these newcomers and owners of more
traditional office space is expected to heat up in 2018. Real estate research company JLL
forecasts approximately 192 million square feet of office space will be constructed in the
country through 2022, and notes that vacancy rates in major commercial corridors are in
the single digits, making for an attractive development environment.
New asset classes like student housing and senior living are emerging in the commercial market, and demand for hospitality properties is expected to outpace supply.
The growth of new hotel supply is projected to slow to 3 percent to 4 percent year
over year during the next two to three years — down from a high of 6 percent to
8 percent growth over the past five years — even as demand continues to grow,
according to JLL, which sees the sector as a “ripe” opportunity for investors.
In January, commercial real estate developer Embassy Group, a partner of Blackstone
Group LP, announced it was laying the groundwork for the first Indian real estate
investment trust (REIT). The move is expected to make a key source of capital available
to India’s real estate developers, according to the Bloomberg news service. n
By Steven Wyble
India’s year-over-year GDP growth
rate as of third-quarter 2017