The Outlook for India in 2021
India’s economic rise has drawn parallels to the early rise of China. However, the nation faces a unique set of challenges and presents a unique set of opportunities for investors that are in contrast to its Asian counterpart.
Three themes should dictate the outlook for investors in India over the foreseeable future.
India’s economic growth was slowing down prior to the COVID-19 crisis. GDP growth remained stubbornly below government targets for years before 2020. The health crisis and strict lockdown plunged GDP growth into deep negative territory.
While experts expect a rebound in growth this year, a new crisis has emerged. Farmers across the country have been facing off with the government over new rules implemented in the agricultural sector. Could this political challenge hinder the recovery? Could these concerns spill over into investor strategies?
Real estate regulations
Sweeping regulatory changes, such as the Real Estate (Regulation and Development) Act, 2016, have streamlined the country’s real estate sector. Now, global giants such as Brookfield and Blackstone have entered the market with the nation’s first real estate investment trusts. Meanwhile, a generation of young buyers are gearing up to purchase their first home, boosting the residential real estate sector.
Investors and developers must navigate this surge in capital flowing into the asset class to find attractive deals.
Home to 25 unicorns, India’s startup ecosystem has been accelerating in recent years. In fact, the nation produced 11 unicorns last year despite the pandemic. As family offices and angel investors emerge to fund these startups, the asset class could mature further in 2021.
On March 9, MarketCurrents WealthNet will host a panel of Chinese family offices to discuss these themes and more. Learn more about the upcoming online event here.