Prices 'unimaginable' if India on 'faster' growth

The Chairman of Emaar Properties, Dubai’s largest developer, believes raw material prices may reach an “unimaginable” level if India’s Prime Minister Narendra Modi can put India on a faster growth track next to China.

“If Indian PM Narendra Modi can cut the bureaucratic red tape and put India on a faster growth track like China, which is already growing at a fast speed, raw material prices (steel, cement etc) will be ‘unimaginable’,” Mohamed Alabbar said in Dubai on Monday.

Emaar is the only Dubai-based company to set up a real estate development joint venture in India with MGF (Motor & General Finance) Developments Limited of India.

Since its inception in 2005, Emaar MGF has invested in real estate developments (residential, commercial, retail and hospitality sectors) with a pan-India presence.

Though other Dubai-based developers had announced mega real estate development plans in India through joint ventures, they backed out, citing to delay in getting permissions.

US-based The Blackrock, world’s largest asset manager, and the Confederation of Indian Industry, an association of Indian businessmen, have said they are optimistic that India can get to 7 per cent gross domestic product (GDP) growth in 2015 and sustain it at that level.

As for China, Goldman Sachs, a global consultancy, expects China’s 2014 GDP to grow at 7.3 per cent, while 2015 GDP forecast is at 7.1 per cent, down from 7.5 per cent.

India and China have a population of 1.25 billion and 1.36 billion, respectively, in 2013.

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