Who is it that Forbes magazine contributors consider to be the next economic “dynamo” in Asia? What country’s economy has awakened and is headline news in their national newspapers? The answer to both questions is India. Spurring on this blossoming economic growth is a middle class enjoying a prosperity resulting from a modernization initiative that began about two years ago.
When India placed their trust in forward thinking Narenda Modi for Prime Minister, it was because they believed he would deliver on his promises. The Indian people invested their votes wisely. A burgeoning middle class is the return on their investment. In little more than a year after taking office the wheels of change had already made so much progress in India that the rest of the world was put on notice that there is no doubt that India’s time has come to take its place as a world leader among global economies.
By opening India up to foreign investment, Modi has succeeded in cutting the nation’s inflation rate by more than half. Its growing economy has surpassed China’s and India is showing no signs of stopping. The World Bank’s outlook is extremely positive, expecting India to become the third largest economy in the world within the next decade.
Commercially, tech startups, agriculture, automobile manufacturing and e-commerce are the central growth industries. With a middle class consisting of only 5% of the nation’s population, economists predict India’s middle class will explode within the next five years or so by an unbelievable 400%. That means expectations of about 50 million Indians enjoying a middle class lifestyle will grow in numbers to more than 200 million. If the nation maintains this accelerated level of growth in its middle class, that means by the year 2030 nearly one third of India’s projected 1.5 billion 2030 population will be considered middle class.
Key to understanding investment opportunity in India is to know how the middle class will move India’s economy. What are the demands an Indian middle class will have for investors to respond to? Here are 5 reasons to invest in India:
India has always been a favorite destination for travelers. In fact, it is expected that tourism of India will contribute more than $40 billion to the nation’s economy by the year 2020. However, rather than India being primarily a host country to other, Indians with expendable income will become a growing market as they enjoy the financial freedom to explore the world for pleasure. Whether investing in a resort or a hub of travel offices, this industry is worth exploring for investment.
With more than half of India’s population under the age of 25, institutions of higher learning should see rising numbers of students. A growing economy focused on technology, advanced agricultural techniques, and even a budding space program, it all translates into a boom among institutions of higher learning to offer quality STEM programs in order to produce the labour force the country needs. With more Indian parents able to afford to educate their children, colleges, institutes and universities will have to expand to meet the needs of growth. Construction of more classrooms and dormitories means higher education is a wise place to invest.
3. Media & Technology
Virtually every single middle class Indian is connected and online. They are highly active on social media. They are one of the world’s largest consumers of online news. Within their own nation, India’s middle class is actually the largest online news media consumer. Judging by the growth in India’s e-commerce, this industry provides investors with a great opportunity. India’s middle class has expressed through their e-commerce habits that they prefer the convenience of instant connectivity and competition which provides them with more choices. All of those people logging on means a heavy demand for commercial real estate that will house retail outlets for every type of electronics imaginable.
4. Real Estate
Everyone has got to live somewhere. With a growing middle class becoming upwardly mobile, many Indians will desire a housing upgrade. Residential real estate is already a booming market. And every single resident is a consumer. Commercial real estate growth goes hand-in-hand with the residential real estate boom. Residents need a place nearby to buy their groceries, shop for clothing, go out for dinner, etc.
What is the first thing the majority of people do when they have the luxury of disposable income? They spend money on consumer goods. But how do their local stores maintain their inventories? Although they may place a stock order online, how do those bottles of water arrive at the store? Usually by truck. Although imports may arrive by sea or air, eventually every single product that sits on a shelf in a store has to arrive by land. As India’s middle class inspires retail growth of every kind, the nation must respond with roads and bridges that will give shippers easy, reliable access to retailers.
Grow With India
For more information on how you can grow with India by investing wisely, put your trust in the guidance of global investment experts. By working with professional developers investors have the advantage of skilled, experienced representatives who can track their investments throughout the intricacies of global finance.