The Reality Behind Brand India Getting Bigger
“India means business” was the tagline when Prime Minister Narendra Modi addressed a roundtable of 40 global CEOs on the sidelines of the World Economic Forum (WEF) gathering in Davos on January 22. The PM on his part “narrated India's growth story and presented exciting opportunities for global businesses in India”. Certain new findings only substantiate his claims.
Growing bigger: On January 22, the International Monetary Fund (IMF) projected a 7.8 per cent growth rate for India in 2019. In comparison, China's would grow by 6.8 per cent in 2019, says the global lender. The sudden hit of the note ban in late 2016 and the implementation of the Goods and Services Tax might have slowed down India's growth rate in the past couple of years, but it is now on the path to reclaiming its dominant position. At a growth of 7.1 per cent, India was the fastest-growing country among emerging economies in 2016. However, due to demonetisation in late 2016 and arrival of the GST, economy slowed to 6.7 per cent in 2016. Growth rate remained the same in the year 2017.
That positive note: The government's efforts to address issues around areas such as infrastructure, manufacturing and skilling are paying off, it seems. According to a survey of global chief executive officers by global consultancy PwC, India has emerged as the fifth most attractive destination is the world. While the top position is occupied by the US, our neighbour China has secured the second place. At the third and fourth positions are Germany and the UK, respectively. The “definitive structural reforms” have helped India secure its position as the fifth most attractive market in 2018, pipping Japan, says the survey.
Infra push: According to a recent report by global logistics major DHL and consultancy firm Accenture, India has the best growth prospects among seven large economies of the world, including China and South Korea. "More than any of the world's largest economies, India's major industries have displayed levels of resilience and growth that will buoy business confidence in the short-to-medium turn," DHL's George Laswon said. India gross domestic product had doubled since 2008 to over $2.44 trillion currently, and would continue its upward trajectory for the foreseeable future on the back of infrastructure investments, he added.
Growing trust: When it comes to the government, businesses, non-profit bodies and media, India is also among the world's most trusted nations, reveals the 2018 Edelman Trust Barometer. Of the 28 countries surveyed, 20 are in the “distruster territory”. The Trust Index, the findings of which are based on an online survey of over 33,000 respondents in 28 countries, is topped by China while Indonesia and India have secured the second and the third spot, respectively.
According to the report, released on the sidelines of the WEF meet, China's trust scores are nearly matched by India, the UAE, Indonesia and Singapore. “The Western democracies languish mostly in distruster territory, challenging the traditional geopolitical vision of satisfaction with systems," the report said.
However, India's ranking this year has dropped significantly when compared to its ranking in the past. The country was among the six countries with extreme trust losses over the past year ─ this list is topped by the US.
The reality of it all
The real estate sector, which is also the second-biggest employer in the country, suffered a great deal owing to slow pace of growth. On muted growth, new project launches fell along with home sales. With normalcy returning to the overall economic environment, real estate would benefit greatly. Even if it has been longer, the wait for a complete revival might soon be over for sector stakeholders.