India to be world’s third largest economy in 2006

Real estate clamor in India is rooted in its corpulent financial amplification presently being witnessed in the nation, chiefly in the IT and ITES sectors, which has created innate necessity in Realty sector, mainly in the housing sub-division. The realty segment fête in India is roaring right now and seems to flout the laws of gravity. Albeit we exclude the standard demand in the metropolitan cities still we will be observing an elevated latency in the bazaar. India has an economy ranked as the tenth largest in the world in terms of currency conversion and fourth largest in terms of buying power parity. It recorded one of the top annual growth rates in 2005. Owing to its immense population, however, India’s per-capita income by buying power parity works out to be just US$ 3,262, ranked 120th by the World Bank. India’s foreign exchange reserves amount to over US$ 143 billion. Mumbai serves as the nation’s financial capital and is also home to both the headquarters of the Reserve Bank of India and the Bombay Stock Exchange. While a quarter of Indians still live below the poverty line, a large middle class has now emerged along with the growth of a promising IT industry. India will outshine Japan as the world’s third largest economy in 2006, if Purchasing Power Parity (PPP) is taken as a yardstick, in keeping with a forecast by a US professional services firm. India’s economy, measured in PPP terms, will out shadow the $4 trillion mark in 2006, making it equal to or greater than Japan’s. Only the United States and China will possess larger economies, in accordance with Keystone India’s chief economist William T. Wilson. “The results of liberalizing strategic sectors such as telecom, banking, aviation and real estate are now beginning to show. After growing at 8.5 per cent and 6.9 per cent in 2003 and 2004 respectively, India’s economy is expected to grow 7.8 per cent in 2005-2006 (fiscal year ending in March) then decelerate modestly to 7 per cent in 2006-2007. Depending upon the direction of energy prices, inflation is expected to run in the 5-5.5 per cent range for 2006,” said Wilson. Faster growth is expected to boost salaries by an inflation-adjusted 7 per cent this year, fueling robust consumer spending. The mobile telecom market in India, the fastest growing in the world, is growing at over two million subscribers per month, the chief economist at the Chicago-based firm said. All such developments will inevitably trigger more FDI in the country and the consequent fiscal growth will have a strongly positive and encouraging bearing upon the realty estate segment also. Courtesy:timesofindia.indiatimes.com This article is sponsored by: www.indiarealestateblog.com