We have been talking about $5 trillion economy. But it’s not just us! Many analysts, rating agencies have pegged India’s economy to reach $5 trillion-mark by 2025. The Modi 2.0 government has also envisioned a goal of touching the milestone of $5 trillion by 2025 and $10 trillion by 2030.
And these are not just goals. It is backed by numbers that are screaming GROWTH for the Indian economy.
So which are the factors that are adding fuel to our growth story? We hope you have read Part 1 of this story. But if not, you still can by clicking here. Coming back, we spoke about how the automobile sector shall unlock many wealth creation opportunities for Indian investors.
Today, we shall highlight the next big sector for you.
Infrastructural Developments – Leapfrogging India’s Growth Trajectory
India is expected to emerge as the third-largest construction market globally by 2022. With the real estate sector estimated to reach $650 billion by 2025, cross $850 billion by 2028 and touch $1 trillion by 2030.
In the budget recently, the government announced a continued focus on housing for all by 2022.
It has proposed setting up 1.95 crore houses under Pradhan Mantari Awas Yojna (Rural).
It also offered an additional tax deduction of Rs. 1.50 lakh on interest paid on affordable home loans (priced below Rs. 45 lakh) taken up to March 2020, taking total interest deduction of Rs. 3.5 lakh.
India’s national highway network is expected to cover 50,000 kilometres by 2019.
The Government has given a massive push to the infrastructure sector by allocating Rs. 4.56 lakh crore for the sector.
Communication sector allocated Rs. 38,637.46 crore to development of post and telecommunications departments.
The Indian Railways received an allocation of Rs. 66.77 billion. Out of this allocation, Rs. 64.587 billion is for capital expenditure.
Rs. 83,015.97 crore allocated towards road transport and highway.
Rs. 3,899.9 crore to increase the capacity of Green Energy Corridor Project along with wind and solar power projects.
Allocation of Rs. 8,350.00 crore to boost telecom infrastructure.
Based on this growth, think about the impact it would have on realty, cement, metals, and other such related industries.
And yes, infrastructure will continue to be one of the biggest employment providers for the country as well. Rural India is just about opening up for now, with 50-60% of the Indian population belonging there.
Along with more transparency and clarity on growth vision from the government, the future of India looks bright. India looks unstoppable and ‘India’s outlook for 2030 looks bright with opportunities in abundance.
And as you know, a healthy economy will always reflect in the stock markets. However, not all stocks shall deliver winning returns for you. You have to look for leaders that can ride on India’s growth trajectory. The leaders can be enjoying a market dominance, unique product or business model, high stakeholder confidence or innovative technology. You need to conduct due diligence before investing your hard-earned money into it.