Quote on Balanced Growth: Manufacturing, Construction, and Services Drive India`s 7.8% GDP by Mr. Samyak Jain, Director, Siddha Group
Below the Quote on Balanced Growth: Manufacturing, Construction, and Services Drive India`s 7.8% GDP by Mr. Samyak Jain, Director, Siddha Group
"India's Q1 GDP growth of 7.8% once again reinforces the country's position as the fastest-growing major economy globally. The encouraging aspect is the balanced nature of this performance—manufacturing and construction are expanding close to 8%, while services are growing at a robust 9%+. This construction sector growth is particularly significant for the real estate industry, as it reflects strong infrastructure development and housing demand across urban and emerging markets.
On the demand side, momentum is equally broad-based, with private consumption, investments, and government spending all rising in healthy tandem. From a real estate perspective, this translates to sustained demand for both residential and commercial properties, driven by rising disposable incomes and corporate expansion. The healthy investment climate is fostering new real estate projects and infrastructure development, creating a positive cycle for the sector.
That said, challenges remain. The recent 50% U.S. tariff on Indian exports, along with external headwinds, will pose some risks in the months ahead. However, with ongoing reforms, policy support, and inflation remaining relatively benign, India's macroeconomic story continues to be among the strongest and most compelling globally. For real estate, this stable macroeconomic environment, stable interest rates, coupled with urbanization trends and government housing initiatives, presents significant opportunities.
We expect FY25-26 growth to be steady & above global peers - providing a solid foundation for corporate earnings expansion and equity market performance. This sustained economic growth will continue to drive real estate demand, particularly in tier-1 and tier-2 cities, supporting both residential sales and commercial real estate investments."
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