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| Home > Knowledge Centre > Leaders Speak > Ved Prakash Arya |
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| Mr. Ved Prakash Arya - CEO & MD, Milestone Group |
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Post elections, the overall economic climate in India has seen a positive change. The stable government with reformist agenda will lead to attractiveness of Indian market as a destination for global investors. The economy being poised to growth by around 9% in coming years, should gradually lead to industrial recovery contingent on revival of local as well as global consumption demand.
With the budget showing a fiscal deficit, it is likely to lead to hardening of interest rates in the short term. This will lead to large government borrowings resulting in sharp jumps in yield. I believe that these are times to stick to core investing principals and to maximize reward while limiting risk exposure by being selective in terms of individual assets based on asset type, geography, sector and other factors.
After some inactivity in the real estate sector, we are seeing improved participation from the retail household in the residential sector, especially in the low & mid-end housing segments. With liquidity pressures easing, we expect substantial amount of fresh supply of completed projects to be available over the next few quarters. In the commercial segment, fall in capital values has encouraged in increasing number of companies to explore acquisition opportunities rather than lease out space. There is improved level of activity in the sector but the markets are expected to remain soft in the short to medium term. |
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