4 best investment opportunities to look out for in 2016
2015 was the year when the Indian economy began recovering from its previously frail state. The government worked hard to bring India back to a good place and the nation is quickly growing to become one of the strongest economies in the world. In fact, the World Bank themselves has stated that India’s economic growth is expected to rise to about 7.9 percent in 2016 to 2017 and to 8 percent by 2017.
With the New Year upon us, economists have been studying the market to see which sectors are worth investing in the New Year. Here are some of the major investment trends to watch out for in India this year.
- Real estate will boom2015 saw the introduction of several regulatory changes in the real estate industry, including relaxation on foreign direct investment laws and the approval of the Real Estate Bill by the Union Cabinet. This is a positive move in the industry that will prompt a rate of 50 basis points in the industry. Owning property has always been one of the top investment trends in India and 2016 looks to be a good year for the industry. Experts believe that there will be a major pickup in sales and an improvement in unsold inventories. There is a high demand for readymade projects and buyers are looking for properties that will be ready within a year. Realty in metropolitan cities is in high demand and the large number of upcoming projects in these cities demonstrate that the industry has a bright future ahead.
- The corporate fieldIndia’s corporates are quickly expanding and witnessed an average growth rate of 7% last year. This percentage growth is higher than the average earning growth rate in the MSCI All Country World Index. This year will also see corporate taxes being cut and federal goods and service tax will replace state taxes for companies that deal with shipping across the globe. This will result in a much larger growth rate, making it an automatic investing trend in 2016. According to Bloomberg Data, the average corporate earnings for India in the MSCI Index will be over 16%.
- ICT trendsThe IT and media sectors are also witnessing rapid growth. A recent survey was conducted with over 139 Indian enterprises regarding their Information and Communication Technology (ICT) investment trends. This study showed that companies mainly spread their ICT budget on hardware, software, IT services, consulting, and communication. The ICT market is set to change in this year to directly influence the target market. Companies are able to understand how ICT rupees in specific verticals and size bands can improve target market, and, therefore, a number of companies are investing in this field.
- Startups are catching the crowdIndia’s startup scene is quite young but is growing fast with over 4 Billion USDs invested in the first three-quarters of last year. India was once an outsourcing hub, but now it is the birthplace of thousands of brilliant ideas being transformed into businesses. There are a few successful ones and some that haven’t quite made their mark in the economy. But in terms of India’s startup success, it certainly is a brilliant field to invest in. These businesses have spread their tentacles into transport, food, fashion, and even education and is certainly making the country’s economy boom, making it one of the most important investment trends to watch in 2016.
These were some of the top investment trends for 2016. So, analyse carefully and make your pick.