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India Economy Forecast October 2009



The India economy forecast released by the International Monetary Fund (IMF) in October 2009 predicts that the country's economic growth rate will decelerate in 2009 from the very high growth rates that prevailed over the period 2005-2007, but will still register an expansion rate that most countries in the world would envy.

In particular, the IMF predicts that the Indian economy will continue expanding in 2009 at an average rate of 5.4% after having grown 7.3% in 2008 and 9.4% in 2007.

Economic growth in India is predicted to accelerate gradually in the subsequent four years and reach 8% by 2013. The graph below depicts historical real GDP growth rates from 2004 to 2008 and annual forecasts for the period 2009-2013.



India Economy Forecast October 2009

Sources:IMF,www.Property-Investing.org


The India economy forecast issued by IMF in October 2009 predicts also that the inflation rate in 2009 will increase to 8.7% from 8.3% in 2008, contrary to decreasing inflation trends observed in many other countries. As the graph below shows, inflation is predicted to be still above 8% in 2010 but decrease down to 4.1% by 2012.

India Inflation Forecast October 2009

Sources:IMF,www.Property-Investing.org


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Real Estate Investment Mathematics!
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Internal Rate of Return(IRR)
The 3 Formulas for Modified IRR (MIRR)/Financial Management Rate of Return (FMRR)
Potential Gross Income Multiplier (PGIM)
Potential Gross Income
Effective Gross Income Multiplier
Effective Gross Income
Net Income Multiplier
Net Operating Income
Overall Capitalization Rate/Income Return
Capitalization Factor
Band-of-Investment Formula for Estimating a Market/Required Capitalization Rate
Theoretical-Approach Formula for Estimating a Market/Required Capitalization Rate
Appreciation Return
Total Return
Return on Total Capital (ROR)
Return on Equity (ROE)/Cash-on-Cash Return/Equity Dividend Rate
Before Tax Equity Cash Flow (BTECF)
Equity Investment
Loan Amount
Debt Service
Mortgage Constant
Payback Period
Breakeven Occupancy
After Tax Cash Flow (ATCF)
Taxable Income
One-Period IRR
Income Tax Payment in Association with Income Producing Property
Capital Gains
Formula for Cash Flow for Last Period of Analysis
Future Resale Price
Annual Rental Income of Occupied Multi-Tenant Property
Multi-Period Lease Rate Growth Formula with Intertemporally Variable CPI Forecast
Multi-period Lease Rate Growth Formula with Constant CPI Forecast
Present Value (PV)
Net Present Value (NPV)
Profitability Index

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