“Narendra Modi’s Make in India initiative has been a hit, suggests rating agency Moody’s recent report. Moody’s suggests that net foreign direct investment inflows have hit an all-time high in early 2016. Moody’s said that the FDI inflows have more than financed the current account deficit (CAD) for the first time since 2004”
Of late, the commercial real estate has gained significant mileage in terms of FDI and Private Equity. The investors across the globe are betting high on the retail and e-commerce sectors in India. It cannot be a coincidence! Indeed, it is the impact of the reformatory measures taken by Mr. Modi-led NDA Government. Rating agency Moody’s recently came out with a report which suggested that net foreign direct investment inflows have hit an all-time high in early 2016, highlighting the success of Narendra Modi’s ‘Make in India’ initiative. Moody’s said that the FDI inflows have more than financed the current account deficit (CAD) for the first time since 2004. It is to be noted that a country is known to be facing a CAD when the value of its imports is more than the value of its exports.
“The rise in FDI points to stronger investor interest in India on the back of robust economic growth. Higher inflows also suggest that recent government policies, such as efforts to liberalize foreign investment limits in several sectors and the ‘Make in India’ initiative, are bearing fruit,” Moody’s said in a statement. This is indeed a big achievement. This has, in fact, encouraged many global manufacturers to set-up their operations in India. Few of them have already started working on it, many are about to do so.
The impact of this sudden rise in inflow of MNCs has filliped the demand in commercial space. Though there are malls and office complexes available to meet that demand, they lack that global punch in them. This has created a unique positioning for developers renowned for their global properties. Companies like Hines Group and WTC find themselves well positioned to fill this gap. Rightly so, WTC has recently awarded 26 licenses to various developers pan India to develop projects under its name.
Moody’s also said that the development of industrial corridors, investment and manufacturing zones and ‘smart cities’ will further bolster investment inflows. The first half of the year 2016 has already created history; the developments indicate that the second half will beat its predecessor for sure. Make in India, thus is definitely a success!
The author is a real estate consultant. Views are personal.