A
INDIA Economic and Commercial Real
Estate Overview
1 India Economic Overview
The FY15/16 witnessed a strong growth momentum in the economy, with a positive macro-adjustment visible during the
period, with growth of 7.5% in GDP at constant prices till December 2015. The growth trend continued throughout Q3
FY15/16 in the three months period October to December 2015 to reach 7.3% as compared to 7.1% in the previous review
period, clearly positioning the country as the fastest growing major economy in the world. The growth in GDP during the
third quarter of FY15/16 was further accentuated by a narrowing current account deficit along with robust agricultural
production. India¡¯s overall economic size has grown from less than US$900 billion
1
( 40,149 billion) in FY05/06 to over
US$2 trillion
2
( 124,900 billion) in FY14/15. This was on the back of an average growth of approximately 8%
2
during this
decade. On the backdrop of improving economic situation, India¡¯s consumer confidence level continues to top the chart
in the survey conducted by AC Neilson during the third quarter of FY15/16.
India¡¯s growth has been led by the services sector (comprising sub sectors such as trade, hotels, transport, communications,
financial institutions, real estate, business services, social and personal services); which contributed about 53%
1
to the
overall GDP of the country in FY14/15. The industrial sector (which includes manufacturing, mining & quarrying, electricity,
water and gas supply, construction, etc.) was the second largest contributor with a share of approximately 31%
1
, followed
by the agriculture sector contributing approximately 16%
1
to the GDP. Improvements in domestic demand and an uptick
in infrastructure investments by the Government further supported the growth.
Growth in India¡¯s Gross Domestic Product (FY05/06-FY16/17)
GDP ( Trillion)
Growth Rate (%)
FY16/17
(F)
7.5%
140
120
100
80
60
40
20
0
12
10
8
6
4
2
0
FY05/06 FY06/07
9.5% 9.6%
FY07/08
9.3%
FY08/09
6.7%
FY09/10
8.6%
FY10/11
8.9%
FY11/12
6.7%
FY12/13
4.5%
FY13/14
4.7%
FY14/15
7.3%
FY15/16
(E)
7.6%
GDP Growth Rate
GDP in Constant Price
Source: Ministry of Statistics and Programme Implementation & IMF (for FY16/17 F); Please note: GDP for FY 14/15 and beyond, are based on
FY11/12 constant prices
1
Source: World Bank
2
Source: IMF World Economic Outlook Update: Jan 2016
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ASCENDAS india trust ANNUAL REPORT
2015/2016
