The annual report of Reserve Bank of India conveyed about the revival of India Inc. along with improvement in fiscal deficit, reduction in poverty rate and declining rate of inflation. The apex court (RBI) exhibited confidence in a stable government at the Centre and its impact in boosting fresh investments from Indian and foreign businesses. According to this report the gross domestic product rate jumped to 5.5 per cent in the last quarter from the below five per cent figure in the past two years. Economists as well as industrialists were predicting this trend and they are quite positive that economy will maintain the momentum in the remaining quarters too.
The RBI also sees the impact of internal growth in India's international trade. And stability in Rupee can further accelerate India's international trade and these factors are helping to restore the confidence of foreign investors in Indian market, apart from US and Japan, Middle East and EU are also taking interest in the Indian market. furthermore, increase in interest rates in the American market may result as a boon to emerging-market economies like India.
The June quarter of 2014 was the superb one for India Inc., where the profit growth was at a record high and sectors like Real Estate, IT and pharmaceuticals, the major contributors in countries Gross Domestic Product (GDP) performed very well and witnessed a fair growth in the same period. A sample of 2,000 companies that declared results during the first quarter of FY15 reported 43.3% growth in the net profit. All these facts and figures signals economic revival and the growth of real estate in India's economic development. Commercial property
Besides, growth in the residential sector, the commercial realty had also revived in the April to June quarter of 2014. The overall vacancy levels in malls in the top eight cities of India was at 15.04 per cent of the total space available at that time while it came down to 14. 51 in the same period of 2014. The global property consultant Cushman and Wakefield's report covers eight cities and regions including Pune, Ahemedabad, Chennai, Bengaluru, Kolkata, Mumbai, Hyderabad.
The establishment of Real Estate Investment Trusts will also give a upward push not only to the residential real estate market but it will also prove good to commercial properties in the overall economic growth of the Indian economy. India is experiencing revival of the realty sector and the new government has clear vision and objectives to facilitate this transformation.