Economic Survey reaction: Vivek Rathi, Director-Research, Knight Frank India

31 Jan 2023 , 04:51 AM

The theme of Economic Survey is resilience demonstrated by the Indian economy amid challenges posed by geopolitical events in this period. At 7% GDP growth in FY23 and 6-6.8% growth in FY24, India will continue to hold its fastest growing large nation tag. This will create tailwinds for the Indian economy as global capital and technology finds India a bright spot to participate in an otherwise weak global economic order. This shall create employment opportunities and further strengthen the domestic demand base of the country as India becomes a preferred global supplier backed by improving ease of doing business and global competitiveness scores. Real estate, being a derived demand product and an economic multiplier, will certainly benefit from this improved economic outlook for the country. While housing demand remains strong leading to reduced inventory levels, the resumption of construction activities has ensured sustained supply thereby averting sharp price rise risk in the sector. The historic legacy of housing shortage in the country provides a long runway for growth of the sector and developments highlighted in the Economic Survey further cement its strong position.