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Unfortunately, the international scene is quite uncertain with Oil prices going up and the unpredictable approach of the US President resulting in a trade war between the United States & China, the world's two largest economies. This has brought in a lot of uncertainty to the external macro environment though, the United States economy, which contributes more than 25% to the world's GDP, is doing well. The resultant impact on our currency is negative as the Indian Rupee has weakened by 7% and will affect the country's balance of payments.
Though the Indian manufacturing sector is showing good order books, companies are declaring better financial results and though the Monsoon is by & large good, there is a certain amount of anxiety amongst trade and industry due to interest rates beginning to go up, apart from the uncertainty of impending parliamentary elections in early 2019.
After three years of a recessionary trend in real estate, the sector seems to be on the recovery path. With not many new project launches during the last two years, unsold numbers have come down and prices have stabilised. With the implementation of RERA, much-needed customer confidence and positive sentiment are returning back. The Central government is doing its bit by increasing the thrust on infrastructure improvement. The spoilsport can be rising home loan interest rates.
In this background, Brigade has launched a number of new projects and is gearing up to launch several more in Bengaluru, Chennai, Hyderabad & Mysuru. With ‘Parkside' as the brand for ‘Independent Living for Seniors', we are offering well thought out residences in all four directions of Bangalore. We are back to offering Ownership Offices for investment, lease or for own use. In fact, the first three projects of Brigade in the late 80s & the early 90s were all commercial projects. We have also started the concept of ‘Managed Residences' in our villa projects in Devanahalli - Brigade Atmosphere & Brigade Orchards. With ‘Ease of Occupation' for the customer in mind, we have introduced ‘Brigade Plus' initiative offering a host of conveniences. With the launch of ‘One Brigade App', our customers can avail a number of benefits.
With the commencement of the festival season, business & investor sentiments will improve. I seek the continued goodwill and patronage of our customers."
—Jaishankar CMD, Brigade.
OUR country is experiencing a crisis of confidence. The sudden and sharp depreciation in the value of the rupee has caught the political establishment and the corporate world off guard. Why has this happened? To put it simply, it is because of complacency, deficiency in governance and a series of scams of very high proportion. When India was Shining with 9% GDP growth, the governing fraternity thought India was moving towards super power status and took the liberty of making a series of bad decisions and introducing socialistic schemes, which India could ill afford. With BRIC countries’ steady growth in the past few years, it was felt that the United States’ influence over the world had reduced. But the USA has once again proved that ‘if it sneezes, the world still catches a cold’ (this time by way of 'Quantitative Easing’). For India to get out of this mess, it is essential to focus on strengthening its economic fundamentals rather than trying to depend on FII hot money.
However sound the intentions behind socialistic schemes like NREGA, RTE and the Food Security Bill may be, they are bound to adversely impact our country’s current account deficit—primarily because of our record of very poor delivery and execution, resulting in huge leakages. As a developing country, we are not in a position to fritter away lakhs of crores of rupees. If the same amount is spent, year after year, on employment generation projects rather than doles, it would help in self-sustenance of the poor. The old proverb of 'teaching a man to fish, rather than feeding him fish' is what needs to be done. The deadly combination of socialistic schemes of the central and state governments will have a huge negative effect on the availability and productivity of labour willing to work, in spite of our having a population of 1.23 billion.
If the government continues to act on the basis of political expediency and the 2014 parliamentary elections, the only thing left for citizens is to pray for the economy to stabilise on its own and to also pray for a stable central government to be elected in 2014. Luckily, the people of Karnataka have got a stable government after many years of instability.
In an otherwise precarious situation, a silver lining may be that Indian exports will become substantially more competitive and may result in exports exceeding imports, leading to current account surplus.
Even at this stage, it is heartening to know that international investors still think the long term India story is good, due to its population and resultant demand, and the possibility of graduating from a developing country to a developed country.
One needs to have hope. To quote Barack Obama, “Hope in the face of difficulty. Hope in the face of uncertainty …. A belief that there are better days ahead.” Based on this hope, we in Brigade Group will continue to plan to start more projects in the cities in which we operate. The two recent launches—Brigade Golden Triangle on Old Madras Road and Brigade LakeFront in Whitefield—were well received. More launches are planned in Bangalore and Mysore in the next few weeks, and in Chennai in the new year.
It is a nice feeling to find ourselves, for the third year in a row, to be amongst the Best Employers in the country. Economic Times and Great Place to Work Institute has rated Brigade Group as number 2 in the real estate sector and number 52 amongst all industries surveyed. Our ranking has consistently improved year after year. I sincerely thank the entire staff of Brigade Group for this coveted honour.
After redeveloping the 3-acre Sangolli Rayanna Park in Malleswaram, another of our major CSR initiatives was completed recently. This was the development of the city authority's 5-acre land in Malleswaram West into a well-planned playground for track & field and other sports. The playground is aptly named after the founder of Bangalore, Kempegowda.
The year 2013 marks the 150th birth anniversary of the noble soul Swami Vivekananda. It is important to recollect his words of wisdom in this strife torn world. In my opinion, only good economic development can steer us away from political unrest of the kind Egypt, Pakistan and Syria are experiencing. This issue of Brigade Insight is dedicated to Swami Vivekananda.
Lastly, as major festivals—Ganesh Chaturti, Dussera and Diwali—approach, it is time to celebrate and pray for a happier tomorrow.