By Divya Chowdhury and Praveen Paramasivam
DAVOS, Switzerland (Reuters) – India’s economic slowdown is not expected to show up in the country’s housing market, Godrej Industries Group Chairperson Nadir Godrej said in an interview on Monday.
Godrej, an Indian conglomerate which mainly targets the “middle category” of India’s housing sector, is keeping a close watch on its debt given the cyclical nature of the business and is hopeful of riding out a potential down cycle, he added.
India forecast its slowest economic growth in four years for the year ending March, weeks after the country’s central bank lowered its growth outlook for the next financial year.
Middle class Indians in the country’s major cities are already cutting spending due to persistent inflation.
A slowdown is not evident in the housing sector, which struggles during downturns, and nor is one imminent, Godrej told the Reuters Global Markets Forum on the sidelines of the World Economic Forum’s annual meeting in Davos, Switzerland.
A Reuters poll published last month forecast house prices in India will rise steadily over the coming years, driven mainly by demand from wealthy individuals. But rising inflation will make owning a property unattainable for most.
Godrej’s group, which has annual revenue of more than $6 billion, includes Godrej Properties as well as animal feed and vegetable oil manufacturer Godrej Agrovet and Cinthol soapmaker Godrej Consumer Products.
Godrej said India’s rural economy is improving due to an increase in consumption in villages.
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(Reporting by Divya Chowdhury in Davos and Praveen Paramasivam in Chennai; Editing by Alexander Smith)
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