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Appendix - Independent market
research report
By CBRE South Asia Pvt. Ltd
A INDIA ECONOMIC AND COMMERCIAL REAL ESTATE OVERVIEW
1 India Economic Overview
The global economic landscape has been witnessing turbulent times over the last few years, with an ongoing downturn
in Europe and the United States leading to stagnation in global growth. Slowdown in advanced economies has led to a
shift of focus on the emerging economies of Asia and rest of the developing world. India, besides China, is a leading
contributor to global economic growth and has contributed towards an increase in global consumption and investment
activity.
The Indian economy is ranked as the ninth largest in the world by nominal GDP, and third largest in terms of purchasing
power parity . It has exhibited healthy growth rates over the last few years, with an average GDP growth of 8.3% over
the period 2003-10. However, debt crisis in the Eurozone, persistently high infation and repeated increments in lending
rates by the Central Bank led to a slowdown in investment and consumption activity in 2011. This led to a signifcant
slowdown in GDP growth in 2011, which grew by 6.1% during the quarter ending December 2011, as compared to a
rate of 8.3% over the same period in 2010. As a result the Central Bank revised India’s economic growth prospects
from the earlier forecast of more than 8% to close to 6.9% for 2011-12, amidst volatile investment activity and weak
economic sentiment.
Growth in India’s Gross Domestic Product (2005-12)
Amongst the sectors that dominate India’s economy, services sector constitutes almost 59% of the overall GDP of
the country. Services sector comprises of trade, hotels, transport, communications, fnancial, institutions, real estate,
business services, community, social and personal services. Industry (27%) and Agriculture (14%) are the other sectors
which contribute to the country’s growth trajectory. In terms of states that lead in terms of GDP contribution, Maharashtra,
with its expansive industrial sector, contributes almost 21% to India’s GDP. It is followed by Uttar Pradesh (12%),
Andhra Pradesh (12%), Tamil Nadu (11%) and Gujarat (10%), Karnataka (5.5%). Majority of these states have a
fourishing industrial as well as services sector, which has contributed to their sustained dominance over the country’s
economic landscape.
1 International Monetary Fund
2 Ministry of Statistics and Programme Implementation, Government of India – Press notes Q3 2011
3 Ministry of Statistics and Programme Implementation, Government of India – Press notes Q3 2011
4 Reserve Bank of India – Monetary Policy Statement 2011-12
Source: Ministry of Statistics and Programme Implementation, Government of India * Figures for 2011-12 are advanced estimates
released by the Ministry; Note: GDP growth rates are infation-adjusted and are provided by the Government
60
50
40
30
20
10
0
GDP (INR tn)
GDP (at Constant Prices)
Growth rate (%)
GDP Growth rate
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2005-06
9.50 9.60 9.30
6.80 6.90
8.00 8.40
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12*
A-ITRUST ANNUAL REPORT 2011/2012 181