End of recession(17 Apr 2009)
The recent surge in the stock markets is the latest sign that the India is among the first in the world to emerge out of recession. Although consumer spending never froze in India, unlike in the west, the middle-class has slowly come out of its shell and is back in the spending mode. All consumer goods including FMCG and durables are back in demand even as banks have started disbursing loans at cheaper rates. Foreigners are back in the country and are scouring for investment opportunities.
Even in the housing sector, while large, expensive housing projects are still finding no buyers; the low-cost projects designed for the middle-class are sold out from the moment they are announced. Real estate companies who had invested in ambitious housing projects are suffering, but those who turned their attention to low and mid-budget housing are finding business without any problem.