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• With 4.1% growth in Q4 FY 2022, India’s overall GDP growth stood at 8.7% in FY 2022 against the contraction of 6.6% in FY 2021.

• India recorded a highest-ever Foreign Direct Investment (FDI) of USD 83.57 billion in FY 2022. FDI equity inflow in the manufacturing sector increased by 76% YOY.

• The Indian Rupee breached the 79 mark against the US Dollar for the first time on 28th June 2022.

• Retail inflation, as measured by the Consumer Price Index (CPI), was recorded as 7.79% in April 2022, the highest value since the 7.87% reading in April 2014.

• Manufacturing PMI weakened to 53.9 in June 2022 from 54.6 in May 2022 due to rising input costs.

• The Current Account Deficit narrowed to USD 13.4 billion in Q4 FY 2022 from USD 22.2 billion in Q3 FY 2022.

Investor Confidence Remains Muted Amidst Uncertainty in the Global Environment

During Q2 2022, private equity investment inflows into the Indian real estate sector amounted to USD 704 million (INR 56 billion), registering a sequential decline of 32%. The perturbations from repeated waves of the COVID-19 pandemic have come in the way of sustained growth recovery in India. The supply constraints pushed up commodity prices, thereby intensifying inflationary pressures and threatening the nascent economic recovery across the world.

Commercial office assets continued to remain the frontrunner during Q2 2022, garnering about two-thirds share of the investment pie. All the quarterly investment came from foreign institutional investors and was concentrated in core office assets across Mumbai, Chennai and the NCR.

India’s life sciences sector holds huge potential for growth in the current decade, with a large talent pool at a significantly competitive cost, making it a compelling destination for global research & development (R&D) and manufacturing. Actis invested USD 200 million (INR 16 billion) in Rx Propellant which is involved in the development and marketing of life sciences real estate projects across Hyderabad and Bengaluru.

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