Say what you, India's growth have been fueled by low cost. Exports of IT, ITES, Auto Components, textiles that are fueling the growth of the nation have all been because of Low cost. Salary in the IT and Financial services might have skyrocketted, but average salary of a skilled engineer at Bharat Forge and Bajaj Auto are still as low as that of an unskilled worker in medium developed countries ( This I read in an old swaminomics article today morning).
. When your basic need of housing becomes unaffordable, you will join the next company that is giving you a better hike and the company will have to hire a replacement at a higher package than your previous salary because more often than not, your replacement will also come from a different company for a Hike. And all resources being scare, this salary hike war will continue as is continuing, and the cost advantage of India won't be valid too much longer.
. Why do I blame the real estate? Well, but for movie tickets and petrol, I don't see any drastic price rises in any other thing than Housing.
In fact, Mobile phones, Mobile phone calls, Food, Laptops, all have become all the more cheaper and when I see people cramped in 1 room houses but each with a laptop, I can clearly see where the real estate prices will bring us. If only the real estate prices were rational! Earlier, when I believed that the Inflation in real estate was due to bulk buying by NRIs, I thought the prices will come down eventually.
But, then I saw that the Mills owners are not going to return the 100's and 1000's of crores back to the Developers, and those crores have to be recouped back :) The prices will not come down as long as they building don't grow skywards. For those who are waiting for prices to come down, it will be a real long wait. >>Vote this on Indian Pad.
posted at 9:51 AM Say what you, India's growth have been fueled by low cost.
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