ECO121: MACROECONOMICS PRINCIPLES

Class: MKT1708
Group 3
Instructors: Mr.Pham Thanh Vinh
Submission due: 13th July, 2022

FOR TEACHER ONLY

MARK MARKED BY
(NAME AND SIGNATURE)

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 TABLE OF CONTENT

1.Overview……………………………………………………………….3
2. GDP………………………………………………………………….3-5
3. FDI…………………………………………………………………..5-7
4. Standard of living……………………………………………………7-9
5. Budget deficit………………………………………………………9-10
6. Trade deficit………………………………………………………11-12
7. Banking system…………………………………………………...12-14
8. Financial market…………………………………………………..14-15
9. Inflation rate…………………………………………………..…..15-16
10. Unemployment rate……………………………………………...16-17
11. Exchange rate……………………………………………………….18
12. Real estate market……………………………………………….18-19
13. Bonds market…………………………………………………….….20
14.Conclusion…………………………………………………………...20

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1. OVERVIEW
The Indian economy is a developing new industrial market economy, the sixth largest
in the world, after the United States, China, Japan, Germany and the United Kingdom.
This rapid rate of economic expansion will result in the size of India's GDP. India will
exceed Japan's GDP by 2030, making it the second largest economy in the Asia-
Pacific region.
The Indian economy is diverse and includes sectors and sectors: agriculture,
handicrafts, textiles, manufacturing and many services sectors. Advancement to a
digital age and a large population and education, fluent English are young turning
India into an important destination for business operations (back office) of global
companies as they conduct outsourcing their customer services and technical support.
India is a major exporter of skilled workers in software and financial services and
software engineering. Other sectors such as manufacturing, pharmaceuticals,
biotechnology, nanotechnology, telecommunications, shipbuilding and aviation are
showing strong potential and are seeing higher and higher growth rates.

2. GDP
- India is in 3rd position after China and Japan among Asian Countries. India shares
around 9% of the total of Asia's GDP (nominal).
- Based on PPP, India's economy in 2021 is projected at 10,207 billion international
dollars, 3rd highest in the world, behind the United States and China. India
contributes 7.19% of the entire world's GDP (ppp). India shares over 16 percent of the
total of Asia's GDP (PPP). The gross domestic product (GDP) of India at purchasing
power parity (PPP) is 3.35 times of GDP at nominal.
- The Indian economy crossed the $1 billion mark in 2007 and the $2 billion mark in
2014 in nominal terms. In PPP methods, India crossed the one billion mark in 1990.
Estimates by the world bank are available since 1960 when the country's GDP was 37
mn USD. 2002-19 is the best period for the Indian economy as India's economy has
expanded by 458% in 17 years.
- The Gross Domestic Product (GDP) in India was worth 3173.40 billion US dollars
in 2021, according to official data from the World Bank.

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- The Gross Domestic Product (GDP) in India expanded 0.80 percent in the first
quarter of 2022 over the previous quarter, according to OECD estimates The GDP
value of India represents 0.21 percent of the world economy.
- In India, the growth rate in GDP measures the change in the seasonally adjusted
value of the goods and services produced by the Indian economy during the quarter.
India is the world’s tenth largest economy and the second most populous. The most
important and the fastest growing sector of the Indian economy is services. Trade,
hotels, transport and communication; financing, insurance, real estate and business
services and community, social and personal services account for more than 60
percent of GDP. Agriculture, forestry and fishing constitute around 12 percent of the
output, but employs more than 50 percent of the labour force. Manufacturing accounts
for 15 percent of GDP, construction for another 8 percent and mining, quarrying,
electricity, gas and water supply for the remaining 5 percent.

 India GDP Annual Growth Rate

- The Indian economy expanded 4.1% year-on-year in the first three months of 2022,
slightly higher than market forecasts of 4%, but the least in a year, due to rising
Omicron infections, elevated energy prices, and ongoing supply chain constraints.

 India GDP per capita

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- The Gross Domestic Product per capita in India was last recorded at 1817.82 US
dollars in 2020. The GDP per Capita in India is equivalent to 14 percent of the world's
average.

 India GDP per capita PPP

- The Gross Domestic Product per capita in India was last recorded at 7333.51 US
dollars in 2021, when adjusted by purchasing power parity (PPP). The GDP per
Capita, in India, when adjusted by Purchasing Power Parity is equivalent to 41
percent of the world's average

 India Fiscal Year GDP Growth

- The Indian economy expanded 8.7% in the 2021-2022 fiscal year, rebounding from
a 6.6% contraction in the 2020-2021 year.

3. FDI
- Apart from being a critical driver of economic growth, Foreign Direct Investment
(FDI) has been a major non-debt financial resource for the economic development of
India. Foreign companies invest in India to take advantage of the relatively lower
wages, special investment privileges like tax exemptions, etc. When foreign
investment is being made in India, it also helps the country achieve technical know-
how and generate employment.
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The Indian Government’s favourable policy regime and robust business environment
has ensured that foreign capital keeps flowing into the country. The Government has
taken many initiatives in recent years such as relaxing FDI norms across sectors such
as defence, PSU oil refineries, telecom, power exchanges, and stock exchanges,
among others.
According to the Department for Promotion of Industry and Internal Trade (DPIIT),
FDI equity inflow in India stood at US$ 572.81 billion between April 2000-December
2021, indicating that the government's efforts to improve ease of doing business and
relaxing FDI norms have yielded results.

- Total FDI inflow into India in the third quarter of FY22 stood at US$ 17.93 billion,
while the FDI equity inflow for the same period stood at US$ 12.02 billion.
Data between April-December 2021 indicates that the computer software and
hardware industry attracted the highest FDI equity inflow of US$ 10.25 billion,
followed by the automobile sector at US$ 5.96 billion, services sector at US$ 5.35
billion, trading sector at US$ 2.99 billion, construction activities at US$ 1.59 billion,
and drugs and pharmaceuticals at US$ 1.21 billion.
- Between April-December 2021, India recorded the highest FDI equity inflow from
Singapore (US$ 11.69 billion), followed by the US (US$ 7.52 billion), Mauritius
(US$ 6.58 billion), the Cayman Islands (US$ 2.74 billion), the Netherlands (US$ 2.66
billion), and the UK (US$ 1.44 billion).
In the same period, Karnataka registered the highest FDI equity inflow of US$ 17.25
billion, followed by Maharashtra (US$ 9.69 billion), Delhi (US$ 6.39 billion), Tamil
Nadu (US$ 2.38 billion), Gujarat (US$ 2.06 billion), and Haryana (US$ 2.03 billion).
- During the third quarter of FY22, foreign owned assets in India stood at US$ 926.2
billion, up from US$ 852.4 billion in the third quarter of FY21.
Some of the recent investments and developments in the FDI space are as follows:
- In January 2022, Google announced an investment of US$ 1 billion in Indian
telecom company Bharti Airtel, which includes an equity investment of US$ 700
million for a 1.28% stake in the company, and US$ 300 million for potential future
investment in areas like smartphone access, networks, and the cloud.

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- Canada’s pension fund investment board invested Rs. 1,200 crore (US$ 160.49
million) as an anchor investor in the IPO of multiple Indian companies - One 97
communication (Paytm), Zomato, FSN E-Commerce Ventures (Nykaa), and PB
Fintech.
- The FDI in India’s renewable energy sector stood at US$ 1.03 billion for the first
half of the financial year 2021-22.

→ India is expected to attract FDI worth US$ 120-160 billion per year by 2025,
according to a CII and EY report. In terms of attractiveness, investors ranked India
#3; ~80% investors have plans to invest in India in the next 2-3 years, while ~25%
reported investments worth more than US$ 500 million, the Economic Times
reported.
Further, as per a Deloitte report published in September 2021, India remains an
attractive market for international investors both in terms of short-term and long-term
prospects. India ranked 43rd on the Institute for Management Development’s (IMD)
annual World Competitiveness Index 2021. According to the IMD, India's
developments in government efficiency are primarily due to relatively stable public
finances (despite COVID-19-induced challenges), and optimistic sentiments among
Indian business stakeholders with respect to the funding, and subsidies offered by the
government to private firms.

4. STANDARD OF LIVING IN INDIA

-The standard of living in India varies from state to state. By 2021, extreme poverty
has been completely eliminated to as low as 0.8% and India is no longer the country
with the largest poor population.
-There is considerable income inequality in India, as it is also home to some of the
richest people in the world. Average wages are estimated to quadruple between 2013
and 2030.
-The standard of living in India also shows large geographical disparities. For
example, on the one hand, most metropolitan cities and other metropolitan and
suburban areas boast world-class medical facilities, luxury hotels, sports facilities and
recreational activities. similar to that in first world developed countries, while poverty
is significant in rural areas of India, where medical care tends to be very basic or
unavailable because of a shortage of doctors . Similarly, the latest machinery can be
used in most construction projects, but some construction workers work without
mechanization on some projects, mostly in rural areas. However, a rural middle class
is now emerging in India, with some rural areas increasingly prosperous.
-According to the IMF's World Economic Outlook for 2020, India's PPP adjusted
GDP per capita is estimated at US$9,027.
 Poverty
24.3% of the population earned less than US$1 (PPP, about US$0.25 in nominal
terms) per day in 2005, down from 42.1% in 1981. 41.6% of the population (about
540 million people) are living below the new international poverty line of $1.25 per
day (PPP) per day, down from 59.8% in 1981. India, in 2019 had about 2.7% of the
population below the poverty line and is no longer the largest population below the
poverty line

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 Physical infrastructure
Since independence, India has allocated almost half of its total five-year plan to
infrastructure development. Most of the total funding is spent on large projects in the
fields of irrigation, energy, transportation, communication, and social costs.
Infrastructure development is entirely in the hands of the public sector and is
hampered by corruption, bureaucratic inefficiencies, urban bias, and an inability to
invest at scale. Kolkata is the first city in India to boast a metro system. The
government has partially opened the infrastructure to the private sector to allow
foreign investment. India holds second place in the world in terms of road
construction.
As of 2018, there are an estimated 18,170,000 broadband lines in India. The country
boasts the second-highest number of Internet users with 446.75 million people, about
35% of the country's population.
A 2007 study by the Asian Development Bank found that in 20 cities, the average
water supply time was only 4.3 hours per day. No city has a constant supply of water.
The longest supply time is 12 hours per day in Chandigarh and the lowest is 0.3 hours
per day in Rajkot.
A study by WaterAid estimates that up to 157 million Indians live without adequate
sanitation. India is at the top because it has the most significant number of urban
dwellers living in unsanitary conditions.

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 Regional imbalance
One of the key problems facing the Indian economy is the widening disparity among
Indian states and territories in terms of per capita income, poverty, availability of
facilities, etc. infrastructure, and socio-economic development. For example, the
difference in growth rates between forward and backward countries was 0.3% (5.2%
& 4.9%) between 1980–81 and 1990–91, but increased to 3 .3% (6.3% & 3.0%) for
the period 1990–91 to 1997–98.

5. BUDGET DEFICIT
In the past, India had a period of fiscal deficit for more than 40 years. Finally surplus
in the 1970s .
In 2003, the FRBM (Fiscal Responsibility and Budget Management) act was enacted,
setting the goal of the government to reduce the fiscal deficit to 3% of gross domestic
product (GDP) and keep the budget deficit low for a period of time.
but it changed drastically after COVID-19, the budget deficit increased sharply after
that.

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Phase 21-22
The finance ministry in February had estimated the deficit at Rs 15.91,089 crore or
6.9 per cent of GDP. However, in reality in the period of 2021 - 2022, the budget
deficit in absolute terms is Rs 15,86,537 (provisional), ie 6.71% of GDP, which is
considered improved, mainly due to high tax implementation.
Also according to the General Control of Accounts (CGA) tax revenue for the
financial year was Rs 18.2 trillion - compared with a revised estimate (RE) of Rs
17.65 trillion.
Total spending was also higher at Rs 37.94 trillion compared to - RE of Rs 37.7
trillion presented to the National Assembly on 1 February 2021. That means revenue
deficit at the end of the fiscal year was 4.37 %
2022
The budget deficit for the first month of 2022-23 is 4.5% of the Budget Estimate for
the current fiscal. (The deficit was 5.2% in the same period last year.)
Central government budget deficit at the end of May stood at 12.3% (Rs 2,03,921)
mainly due to higher spending (Deficit was 8.2% in the same period last year)
According to the data, the total government income at the end of May was Rs 3.81
lakh crore or 16.7% BE for 2022-23. Earnings were around 18% BE for 2021-22 over
the last financial period.
As of May, (net) tax revenue was at 15.9% of BE 2022-23.(It was 15.1% of BE 2021-
22 for a one-year period ago.) Real-time , net tax revenue stood at Rs 3,07,589 crore
during April-May 
Expected 22-23
The government projects the fiscal deficit for the current financial year at 6.4% of
GDP or Rs 16.61 trillion. as there is some risk to the Rs 16.6 trillion fiscal deficit
target for 2022-23, stemming from revenue loss for the Center due to excise tax cuts,
under-budget transfers . surplus of RBI and additional spending needs for food,
fertilizer and LPG subsidies during the year.
In addition, the Government in its revised Budget estimate for 2022-23 forecasts a
higher fiscal deficit of 6.9% of GDP or Rs 15.91,089 for the fiscal year ending March.

6. TRADE DEFICIT 
Net FPI recorded an outflow of $15.2 bn mainly from equity market

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India recorded a current account deficit (CAD) of 1.2% of GDP in 2021-22 against a
surplus of 0.9% in 2020-21 as the trade deficit widened to $189.5 billion from $102.2
billion a year earlier

The current account balance recorded a deficit of 1.2% of GDP in 2021-22 as against
a surplus of 0.9% in 2020-21 as the trade deficit widened to $189.5 billion from
$102.2 billion a year ago,” the RBI said in a release.
Net invisible receipts were higher in 2021-22 on account of an increase in net exports
of services and net private transfer receipts though net income outgo was higher than
a year ago.
Net Foreign Direct Investment (FDI) inflows at $38.6 billion in 2021-22 were lower
than $44 billion in 2020-21. Net Foreign Portfolio Investment (FPI) recorded an
outflow of $16.8 billion in 2021-22 as against an inflow of $36.1 billion a year earlier.
For the January-March 2022 quarter, the CAD narrowed on a sequential basis to
$13.4 billion, or 1.5% of GDP, against $22.2 billion, or 2.6% of GDP, in the
December 2021 quarter.
The merchandise trade deficit narrowed to $54.5 billion in the March quarter
compared with a deficit of $60.4 billion in the previous quarter. The deficit in the
same quarter a year earlier, however, had stood at $41.7 billion.
As per the data, net External Commercial Borrowings to India recorded an inflow of
$7.4 billion in 2021-22 compared with $0.2 billion in 2020-21. In 2021-22, there was
an accretion of $47.5 billion to foreign exchange reserves on a Balance of Payment
(BoP) basis, the RBI data showed.
As per preliminary data on India’s BoP for the fourth quarter (January to March),
current account deficit (CAD) decreased to $13.4 billion (1.5% of GDP) in Q4 2021-
22 from $22.2 billion (2.6 % of GDP) in Q3:2021-22. “The sequential decline in CAD

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in Q4 2021-22 was mainly on account of a moderation in trade deficit and lower net
outgo of primary income,” the RBI said.

Net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis,
on the back of a rise in net earnings from computer and business services. Private
transfer receipts, mainly representing remittances by Indians employed overseas,
increased to $23.7 billion, up by 13.4% from their level a year earlier.
Net outgo from the primary income account, largely reflecting net income payments
on foreign investment, decreased sequentially as well as on a y-o-y basis. In the
financial account, net foreign direct investment (FDI) at $13.8 billion was higher than
$2.7 billion in Q4 2020-21.
Net foreign portfolio investment recorded an outflow of $15.2 billion – mainly from
the equity market. Net ECBs to India were lower at $3.3 billion in Q4 2021-22 as
compared with $6.1 billion a year earlier.
There was a drawdown of $16 billion in the foreign exchange reserves (on a BoP
basis) as against an accretion of $3.4 billion in Q4 2020-21.
7. BANKING SYSTEM
 As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently
capitalised and well-regulated. The financial and economic conditions in the
country are far superior to any other country in the world. Credit, market and
liquidity risk studies suggest that Indian banks are generally resilient and have
withstood the global downturn well.

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- The Indian banking industry has recently witnessed the roll out of innovative
banking models like payments and small finance banks. RBI’s new measures may go
a long way in helping the restructuring of the domestic banking industry.

The digital payments system in India has evolved the most among 25 countries with
India’s Immediate Payment Service (IMPS) being the only system at level five in the
Faster Payments Innovation Index (FPII).
The Indian banking system consists of 12 public sector banks, 22 private sector banks,
46 foreign banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000
rural cooperative banks in addition to cooperative credit institutions As of September
2021, the total number of ATMs in India reached 213,145 out of which 47.5% are in
rural and semi urban areas.
 Market size
+ In FY18-FY21, bank assets across sectors increased. Total assets across the banking
sector (including public and private sector banks) increased to US$ 2.48 trillion in
FY21.
+ In FY21, total assets in the public and private banking sectors were US$ 1,602.65
billion and US$ 878.56 billion, respectively.
+ During FY16-FY21, bank credit increased at a CAGR of 0.29%. As of FY21, total
credit extended surged to US$ 1,487.60 billion. During FY16-FY21, deposits grew at
a CAGR of 12.38% and reached US$ 2.06 trillion by FY21. Bank deposits stood at
Rs. 162.41 trillion (US$ 2.17 trillion) as of December 31, 2021.
+ According to India Ratings & Research (Ind-Ra), credit growth is expected to hit
10% in 2022-23 which will be a double-digit growth in eight years. According to the
RBI, bank credit stood at Rs. 116.8 lakh crore (US$ 1.56 trillion) on 31st December
2021.
+ As of February 2022, credit to non-food industries stood at Rs. 114.10 trillion (US$
1.53 trillion).

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 Key investments and developments in India’s banking industry include:

+ As of February 21, 2022, the number of bank accounts—opened under the

government’s flagship financial inclusion drive ‘Pradhan Mantri Jan Dhan Yojana
(PMJDY)’—reached 44.63 crore and deposits in the Jan Dhan bank accounts totalled
Rs. 1.58 trillion (US$ 21.25 billion).
+ In November 2021, Kotak Mahindra Bank announced that it had completed the
acquisition of a 9.98% stake in KFin Technologies for Rs. 310 crore (US$ 41.62
million).
+ In October 2020, HDFC Bank and Apollo Hospitals partnered to launch the
‘HealthyLife Programme’, a holistic healthcare solution that makes healthy living
accessible and affordable on Apollo’s digital platform.
+ In 2019, banking and financial services witnessed 32 M&A (merger and
acquisition) activities worth US$ 1.72 billion.
+ In March 2020, State Bank of India (SBI), India’s largest lender, raised US$ 100
million in green bonds through private placement.

—> Enhanced spending on infrastructure, speedy implementation of projects and

continuation of reforms are expected to provide further impetus to growth in the
banking sector. All these factors suggest that India’s banking sector is poised for
robust growth as rapidly growing businesses will turn to banks for their credit needs.
Also, the advancement in technology has brought mobile and internet banking
services to the fore. The banking sector is laying greater emphasis on providing
improved services to their clients and upgrading their technology infrastructure to
enhance customer’s overall experience as well as give banks a competitive edge.

8. FINANCIAL MARKET
 What is India's, Financial Market?
What does the India Financial market comprise? It talks about the primary market,
FDIs, alternative investment options, banking, insurance, and pension sectors, and
asset management segment as well. With all these elements in the India Financial
market, it happens to be one of the oldest across the globe and is definitely the fastest
growing and best among all the financial markets of the emerging economies. The
history of Indian capital markets spans back 200 years, around the end of the 18th
century. It was at this time that India was under the rule of the East India Company.
The capital market of India initially developed around Mumbai; with around 200 to
250 securities brokers participating in active trade during the second half of the 19th
century.
 Scope of the India Financial Market -
The financial market in India at present is more advanced than many other sectors as
it became organized as early as the 19th century with the securities exchanges in
Mumbai, Ahmedabad, and Kolkata. In the early 1960s, the number of securities
exchanges in India became eight - including Mumbai, Ahmedabad, and Kolkata.
Apart from these three exchanges, there were the Madras, Kanpur, Delhi, Bangalore,
and Pune exchanges as well. Today there are 23 regional securities exchanges in
India.
The Indian stock markets to date have remained stagnant due to rigid economic
controls. It was only in 1991, after the liberalization process that the Indian securities

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market witnessed a flurry of IPOs serially. The market saw many new companies
spanning different industry segments and business began to flourish.

The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter
Exchange of India) in the mid-1990s helped in regulating a smooth and transparent
form of securities trading.

The regulatory body for the Indian capital markets was the SEBI (Securities and
Exchange Board of India). The capital markets in India experienced turbulence after
which the SEBI came into prominence. The market loopholes had to be bridged by
taking drastic measures.

 Potential of the India Financial Market

India Financial Market helps in promoting the savings of the economy - helping to
adopt an effective channel to transmit various financial policies. The Indian financial
sector is well-developed, competitive, efficient, and integrated to face all shocks. In
the Indian financial market, there are various types of financial products whose prices
are determined by the numerous buyers and sellers in the market. The other
determinant factor of the prices of financial products is the market forces of demand
and supply. The various other types of Indian markets help in the functioning of the
wide Indian financial sector.

9.INFLATION RATE
In average, India's inflation rate has many changes, by May 2022 the highest inflation
rate in five years, after 2020 and the lowest in 2019

In 1 year from July 2021 to May 2022, the lowest inflation rate in September 2021
with 4.35%, and highest in April 2022 at 7.79%, is the highest point in 5 years  shown
on the chart above and in fact the last 8 years in the rate of inflation in India.
The annual inflation rate in India fell to 7.04 percent in May 2022 from an eight-year
high of 7.79% in the previous month and below market expectations of 7.1%.

According to the Reserve Bank (MPC) assigned by the government to curb retail
inflation based on the consumer price index
The main cause of the inflation is a series of changes to the structure of taxes on
essential goods and cuts in fuel taxes to help consumers avoid rising prices and fight
inflation, wheat prices, tomatoes, potatoes. Generally the key ingredient in the kitchen
- spike. Crop yields also decrease due to droughts causing inflation of crop values.
On the other hand, the sharp increase in inflation in the economy of India also
includes:
+ The conflict between Russia and Ukraine, while India consumes 85% of its oil
needs from imports.
+ Recession caused by the coronavirus pandemic.
+ India's central bank, the RBI, raised the repo rate by 40 basis points to 4.4 per cent.
+ Increased labour, energy and transportation prices are contributing to inflation
worldwide.
10. UNEMPLOYMENT RATE

As of the end of last year, India had about 53 million unemployed people. The
country's unemployment rate, although gradually decreasing, remains high.

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Business Standard assessed that the job crisis in India has not been able to ease the
heat. With about two-thirds of the population aged 15-64, the competition for any job,
except manual labor, is fierce.

Yet, while many are unemployed, others are not looking for work. Statistics released
recently by the Center for Economic Monitoring of India (CMIE) show that more than
half of the 900 million Indians are of working age.
The unemployed are usually students or housewives. Many people choose to live on
rent, pensions fom elderly family members or subsidies from the government.

Accordingly, a report by the McKinsey Global Institute estimates that India needs to
create at least 90 million new non-farm jobs by 2030 to keep up with the growth of

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the youth class. To do that requires India to achieve annual gross domestic product
(GDP) growth of between 8 and 8.5%.

11. EXCHANGE RATE

India moved to a market-determined exchange rate system in March 1993. Under the
new system, the rupee's exchange rate against other currencies is determined largely
by market demand and supply.
Dollar to Rupee Exchange Rate Today, Live 1 USD to INR = 79.2143 (Convert
Dollars to Rupees)
On 15th August 1947 the exchange rate between Indian rupee and US Dollar was
equal to one (i.e., 1 $= 1 Indian Rupee).

12. REAL ESTATE MARKET

Despite the emergence of the pandemic, the sector continues to show resilience and
steady growth in 2021. India's first wave of Covid-19 brought the sector to a near
standstill for a while. However, by the last quarter of 2020, the market has started to
pick up speed, especially due to increased demand for residential space. The second
wave of Covid-19 hit the sector just as it was starting to resurgence. Unlike the first
wave, the ramifications of the second wave are not as long or prominent. Vaccination
reduces infection rate has instilled optimism in the market. 
Size

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Real estate is the second largest sector in the country after agriculture in terms of job
opportunities. A Large number of new housing projects have been launched,
increasing housing sales in the country.  In the first quarter of 2021, more than 58,300
apartments were sold. Organised retail real estate stock is expected to increase by
28% to 82 million sq. ft. by 2023. Around 40 million square feet were delivered in
India in 2021. It is expected that the country will have a 40% market share in the next
2-3 years. India is expected to deliver 46 million square feet in 2022.
Between July 2021 and September 2021, a total of 55,907 new housing units were
sold in the eight micro markets in India (59% for a one-year period ago growth). In
the third quarter of 2021 (between July 2021 and September 2021), new housing
supply stood at ~65,211 units, which increased by 228% for a one-year period across
the top eight cities compared with ~19,865 units launched in the third quarter of 2020.
 Investments
Driven by increasing transparency and returns, there's a surge in private investment in
the sector. In the first-half of 2021, India registered investments worth US$2.4 billion
into real estate assets, a growth of 52% for a one-year period ago). Construction is the
third-largest sector in terms of FDI inflow. FDI in the sector (including construction
development & activities) stood at US$52.48 billion between April 2000 to December
2021. Indian real estate attracted U$5 billion institutional investments in 2020,
equivalent to 93% of transactions recorded in the previous year. As per ICRA
estimates, Indian firms are expected to raise >Rs. 3.5 trillion (US$48 billion) through
infrastructure and real estate investment trusts in 2022, as compared with raised funds
worth US$29 billion to date. Private market investor, Blackstone, which has
significant investments in the Indian real estate sector (worth Rs. 3.8 lakh crore
(US$50 billion), is seeking to invest an additional Rs. 1.7 lakh crore (US$22 billion)
by 2030. The real estate segment attracts private equity investments worth Rs. 23,946
crore (US$3,241 million) across 19 deals in Q4 FY21.
 Office space leasing
In 2020, the manufacturing sector accounts for 24% of office space leasing at 5.7
million square feet. SMEs and electronic component manufacturers leased the most
between Pune, Chennai and Delhi NCR, followed by auto sector leasing in Chennai,
Ahmedabad and Pune. India's gross leasing volume in the top 8 cities stood at 16.2%
this was 12.4% quarter to quarter growth in 2021. India's net absorption of the office
market stood at 11.56 million square feet in quarter four of 2021. This was an 86%
rise by quarter.

The other side,, The 3PL, e-commerce and retail segments accounts for 34%, 26%
and 9% of office space leases, respectively. Of the total PE investments in real estate
in Q4 FY21, the office segment attracted 71% share, followed by retail at 15% and
residential and warehousing with 7% each.

13. BONDS MARKET

India has opened its $1 trillion government bond market to individual investors
seeking public funding for its ambitious spending plans. Asia's third-largest economy
plans to borrow 12,050 billion rupees ($161.87 billion) through bonds in the current
financial year (ending March 2022).
The Government Bond Retail Program offers individual investors a new avenue to
invest directly in securities issued by the Union and State Governments of India.

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Individual investors will be able to easily open and maintain their government
securities accounts online with the Central Bank of India (RBI) for free.
According to Bloomberg analysis, the move comes at a time when rising inflation
puts additional pressure on the RBI to raise interest rates. Tighter monetary policy is
likely to weaken demand for bonds, making it difficult for the government to carry
out this massive debt program.
The Government Bonds Direct Retail Scheme will facilitate retail participation,
develop a deeper bond market, and enable fair market-determined rates for all, across
the entire spectrum of markets yield curve.

14.CONCLUSION
It can be seen that India is currently one of the countries that are on a strong
development momentum, gradually recovering the country's economy. India is trying
to achieve the highest position in Asia as well as in the world. This is clearly
demonstrated in aspects such as: GDP, FDI, standard of living, budget deficit, trade
deficit, national reserve, banking system, financial system, inflation rate,
unemployment rate. To prove it, we can look at a specific aspect like GDP: the
statistics forecasted by experts as well as the reality at the moment: the Indian
economy is expected to grow at 9.2% in real terms in 2021-22. GDP is expected to
grow 8-8.5% in 2022-23. According to the World Economic Outlook forecast, India
will become the world's fastest growing major economy in all three years 2022, 2023,
2024.
During the pandemic, India fell into a state of crisis as its economy grew by negative
3.2% in 2020-2021, the lowest growth rate in more than 40 years. But their economy
has overcome and is growing as strong as it is now.
In short, we can see that India is a country with great potential in all fields and this
country will develop very strongly in the future.

THE END - THANK YOU FOR READING!

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