Jan - Mar 2013

Month after month in 2012, virtually every sector of the Indian economy slowed down till at the end of the year, economic growth stood at 5.3%. But, the cloud seems ready to lift as we usher in the New Year.

The good news comes that global rating agency Standard and Poor’s (S&P) expects India to grow by 6.5% during 2013. If we ignore the blistering speed of the yesteryears, even this is not a bad performance to expect. This growth will impact all arms of the industry and will have a direct effect on the washroom business as well.

The Indian real estate market growth rate is pretty rapid compared to other Asian countries. Real estate companies from across the world are evincing interest in the Indian real estate market. It is reported that India is in the process of investing US $ 1.2 trillion in building new infrastructure by 2017.

In sectors like hospitality, it is doubling its existing hotel room capacity by adding over 100, 000 classified such rooms in coming years. This would entail as FDI of US $ 11 billion. This year will also be eventful for the property market with civic infrastructure projects gaining ground. But there are many who are not convinced by the rosy picture, which is sought to be painted for the realty scene. By mid 2012, hopes were rising fast since the GDP in purchasing power parity (PPP) terms stood at $4.46 trillion a year earlier, marginally higher than Japan’s $4.44 trillion, making India the third-largest economy after the United States and China.

Experts said that India is no longer an emerging economy. It has already emerged. But, beyond that there are not many conclusions one can take from the figures emerging from the statistics. Markets grow on sentiments, perceptions and a generally positive outlook on economy. The trends visible on the ground underline the optimism. There is no reason to be too skeptical.