Country Guide to India
- Area: 3,300,000 sq km
- Population: 1 billion (UN, 2005)
- GDP: $719.8 billion (2005 est.)
- GDP per capita: purchasing power parity $3,400 (2005 est.)
- Main resorts: Palanga, Nida, Juodkrantė
- Major Airports: (Mumbai) Chhatrapati Shivaji, (New Delhi) Indira Gandhi
- Flight Time from UK: 2h50min
- Time: GMT +5:30 (New Delhi, Mumbai)
Overview
India is home to one sixth of the world's population. It is a mystical land of seductive images, religious rites and an intoxicatingly rich history that can be traced back to at least 2500 BC.
Such a rich history has spawned an abundance of ancient palaces, temples and monuments. However, India is also a rapidly emerging modern economy. The country has a burgeoning urban middle class and has made great strides in fields such as information technology. Its large, skilled workforce makes it a popular choice for international companies seeking to outsource work.
India launches its own satellites and plans to send a spacecraft to the moon. It also boasts a massive cinema industry, the products of which are among the most widely-watched films in the world.
Tourist Industry
India’s travel and tourism market was valued at US$42 billion in 2005, and is growing rapidly. India emerged as the fifth most preferred destination by the world’s travellers in a survey conducted across 134 countries. India also figures in the Annual Readers’ Travel Awards 2005, which were announced by the prestigious magazine Conde Nast Travellers UK in its September 2005 edition.
The Department of Tourism’s resolve in promoting Indian tourism has strengthened as it recognises its potential. Tourism in India is the third largest foreign exchange earner, accounting for 2.5% of GDP. It also makes a direct contribution to economy with significant linkages with agriculture, horticulture, handicrafts and construction. The outlay on tourism development rose to Rs7,860 million in 2005/2006, from Rs3,500 million in 2003/2004, and continued to focus on the ‘Atithi Devo Bhavah’ campaign, targeted at the inbound foreign tourists in the country. The literal translation is, ‘The Guest is God’.
Tourism receipts (US$ million)
Property Market
The real estate market in India is undoubtedly booming with local demand for housing and office space becoming very intense; but the market should be considered as an emerging market by investors because the laws relating to foreign direct investment into the real estate market in India have been very restrictive.
However, many restrictions on foreign direct investment into real estate have now been lifted, making it is possible to invest directly into the construction and development of property in India. Consequently, global attention is turning toward India, primarily focusing on the cities offering the greatest potential for yield.
Retail property in India is the market sector that has generated most interest, with growth in this sector alone expected to increase tenfold by 2010. Mumbai, Bangalore, New Delhi, Hyderabad and Pune have all submitted extensive plans for the expansion of their shopping facilities and are, as a direct result, the main areas where investors are concentrating their interest.
Average residential property price rise
Figures according to Express Estates-Indiaproperties survey of 10 cities.
Pune and Kochi are two cities where significant and sustained developments particularly in the information technology and servicing industries have resulted in rapid increases in demand for commercial office space. Both cities are second-tier and are managing to attract a great volume of investors who have smaller initial deposits to invest – basically these are investors who recognise the potential from property in India but who need a slightly cheaper market entry point.
Hyderabad and Chennai are both strategically well positioned and expanding rapidly, with many international companies committed to establishing a base in the two cities requiring commercial property space.
As the Indian market heats up, it is clear that property investment in this emerging economy offers a multi-layered opportunity with great scope for medium/long term rewards.