India market intelligence: India’s recovery to continue and gain momentum
Despite the expectation of slower growth, India’s economy expanded 4.1 percent year-on-year in the third quarter of 2022, with growth largely driven by merchandise exports and declines observed in government expenditure and private consumption relative to previous quarters.
Our latest India market intelligence report also features a spotlight on data centres in India, reflecting on the surging construction demand led by the technology sector.
Inflation remains a major concern with increases in consumer prices and record high wholesale price inflation at 15.8 percent year-on-year.
Results from ongoing efforts from the India government and the Reserve Bank of India to address inflation concern, including an increase in benchmark rate to 4.9 percent, are yet to materialise.
We can expect to see minor improvements possible from the last quarter of 2022, with better prospects as global inflation reduces and begins to reverse domestic prices.
Overall, India’s economy has been resilient and is well-positioned for growth in the long term with possibilities of coming out stronger than expected. There are expectations of potential benefits where India could become the preferred destination for investments typically directed towards Eastern Europe.
These prospects, together with strong economic fundamentals, put India in a favourable economic position moving forward, especially with growing demand in the industrial and manufacturing sectors.
Spotlight on data centres
The data centre industry’s capacity is expected to witness a five-fold increase in the next five years, with an overall 3,900 – 4,100MW of capacity coming online according to agency ICRA.
It is recognised that data centres will play a pivotal role in accelerating the country’s digital economy and the decision to grant infrastructure status to data centres can be a game changer, enabling large corporations to access longer tenured debt at competitive rates and foreign funding.
Download the India market intelligence winter 2022 report (PDF) to read more about the analysis and insights on the India construction market.