If more evidence was needed that India is facing a housing boom, this week's GDP data raised expectations that the industry will continue to drive the economy in the coming years. According to data released on Thursday, the manufacturing sector grew by 13.3% from July to September compared to the same period last year, compared to 7.9% in the previous first quarter, and recorded its best performance in five quarters.
This makes India one of the fastest-growing economies in the world at 7.6%. However, Western economies suffered from high-interest rates and high prices, while China experienced a debt crisis at home.
The long-awaited boom, which has created millions of jobs, comes after six years of debt and pandemic recession before the manufacturing sector started to pick up last year and ahead this year. This is due to the rising incomes of many Indians, poor urban housing and rapid population growth.
The world's most populous nation had an urban housing shortage of around 19 million units last year - and that is expected to double by 2030, according to government estimates.
"The robust growth in construction has significantly contributed to the economic growth - and is likely to play the same role in the next couple of quarters," said Sunil Sinha, an economist at India Ratings and Research, an arm of rating agency Fitch.