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Spotlight on… …India!

After several decades during which the economic development had great difficulties to follow the country's rapid demographic growth, India has made great progress in the last fifteen years, particularly due to the demographic transition and to the reforms initiated in 1991. Today, India counts among the great emerging powers and is already the 4th world's economic power in purchasing power parity and the 11th in nominal value.

Reservoir of educated and qualified labour, with a booming economy that encourages foreign direct investments, and whose government invests in numerous sectors such as the leading edge technologies and the service industry, the largest democracy in the world (2nd most populated country behind China) has become an attractive place for companies wanting to delocalise some of their services and has also become one of the expatriate's favourite destinations.

An expatriate in India:

If you are thinking about relocating your employee to India, you may know that the expatriate community there is already quite significant. Within the cities, he/she will be able to enjoy a high level of expatriates' services for housing and on-site assistance. Furthermore, the average Indian being of a very warm nature and India being very diversified culturally (especially in large cities), he/she will not have much trouble to integrate quickly.

For those who want go with their family, there are of course many international schools such as the Indian International School, the German School, the American International School, the British International School, the Canadian International School, etc. which will ensure a valuable education for their children. For those who would like a French education, the French School of Delhi is a registered institution acknowledged by the National Education Ministry which welcome over 200 students from French communities, French-speaking or foreign in India, from pre-school to tenth grade (eleventh and twelfth grade students take their courses with the CNED (Centre National d'Enseignement à Distance – National Centre of Distance Learning)

The Indian real estate market:

According to a research made in 2009 by PricewaterhouseCooper (PwC) and the Urban Land-Institute, a worldwide institute of research and voluntary education, India is one of the best Asian real estate markets for investments in 2010. Their report indicates that India, particularly Bombay and Delhi, is an excellent destination for an investment in real estate as demand is strong and supply weak and the government does everything to facilitate investment through a flexible politic on the foreign direct investments. Moreover, the sector is growing rapidly and the interest rates are low.

As for the rental market, the gap that separates supply and demand in India pushes rent upwards. In some neighbourhoods in large cities rent increased by 20-25%. A growing population and the demographic migration to the urban centres further accentuate this effect so be prepared to pay a lot for your housing if you want to become tenant in India.

(MMC, 22 of November 2010)

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