Indian Economy in a 'Charming Spot' of Growth
DUBAI — Surjit S Bhalla, Chairman and Managing Director of Oxus Investments Pvt Ltd, has described India as being in a favorable position for sustained economic progress. Speaking at the Arabian Hotel Investment Conference (AHIC) on May 3rd, Bhalla highlighted India's potential for a decade-long yearly growth of 10%.
Key Economic Indicators
- Investment levels have risen to 40% of the gross domestic product (from 25% five years prior)
- Yearly employment growth stands at approximately 3%
- The number of urban women joining the labor force has increased to 18% in 2005 (from 14% in 2000)
India's Growth Trajectory
- “The hype about India is real,” emphasized Bhalla, who manages $25 million in the Indian equity market. “It is in a charming spot of growth, and this can last another decade or two.”
- India is anticipated to surpass China in terms of GDP growth by 2010
- The country's annual growth rate was 5.6% between 1980 and 2002, driven primarily by its burgeoning middle class
Opportunities in India's Hospitality Market
- The AHIC opening session focused on the vast potential of India's hospitality sector, which shares similarities with the Gulf region's market
- Both markets are experiencing tremendous growth and demand for environmentally sustainable buildings and infrastructure
- Upcoming Commercial Space:
- 309 million square feet planned or under construction across major Indian cities
- Augmenting the existing 173 million square feet of commercial space
- Homi S Aibara, Associate at Mahajan & Aibara, highlighted these figures, underscoring the sector's growth prospects.