More Bad Days Ahead For Indian Realty
More Bad Days Ahead For Indian Realty,Infrastructure Sector In The Next 6-9 Months - Deloitte
India's realty and infrastructure sector would see more bad days in the next 6-9 months and that would knock off 2-2.5 percent off the country's economic growth, a senior official of consultancy firm Deloitte said.
There is a pile-up of inventories in the real estate sector and infrastructure will face funding funding problems as investors such as private equity and venture capital firms stay away, Principal Economist Shanto Ghosh said on Wednesday.
"Our impact so far has been largely felt on the financial sector of the economy. I think we have still not seen the worst days in the real sector of the economy," he said.
"That trickling down which has been happening in the U.S. over the last 3-6 months has still not happened in India yet, so I think there is going to be some trickling down to the real activity of the economy over the next few months."
There could be further outflow of foreign funds from India if any new crisis in other areas of financial services such as credit card default erupts, he said on the eve of the release of a report on the financial crisis and its impact on India.
Foreign funds have pulled out around $12 billion so far this year. "Bad news percolates faster and the impact is much bigger than good news," he said.
However, the rebound would happen much faster in India as it is much more insulated and has strong fundamentals, he said adding the global rebound should start happening from the first quarter of 2010.
India's realty and infrastructure sector would see more bad days in the next 6-9 months and that would knock off 2-2.5 percent off the country's economic growth, a senior official of consultancy firm Deloitte said.
There is a pile-up of inventories in the real estate sector and infrastructure will face funding funding problems as investors such as private equity and venture capital firms stay away, Principal Economist Shanto Ghosh said on Wednesday.
"Our impact so far has been largely felt on the financial sector of the economy. I think we have still not seen the worst days in the real sector of the economy," he said.
"That trickling down which has been happening in the U.S. over the last 3-6 months has still not happened in India yet, so I think there is going to be some trickling down to the real activity of the economy over the next few months."
There could be further outflow of foreign funds from India if any new crisis in other areas of financial services such as credit card default erupts, he said on the eve of the release of a report on the financial crisis and its impact on India.
Foreign funds have pulled out around $12 billion so far this year. "Bad news percolates faster and the impact is much bigger than good news," he said.
However, the rebound would happen much faster in India as it is much more insulated and has strong fundamentals, he said adding the global rebound should start happening from the first quarter of 2010.