A Composite Indicator of Realty Sector Activity in India

Priyanka Upreti, Akanksha Handa, Dipak Chaudhari and Saurabh Ghosh

MPRA Paper from University Library of Munich, Germany

Abstract: The realty sector plays a crucial role in India in terms of employment generation, access to housing and as a major source of saving in physical form, besides direct contribution to the country’s Gross Value Added (GVA). In this study, we estimate a dynamic factor for housing (DFH) from a range of available high-frequency indicators of real estate activity. Our empirical findings indicate unidirectional causality from DFH to GVA with evidence of the first and second-round impact of revival in DFH driving recovery in GVA. Our empirical results also indicate the critical role of counter-cyclical fiscal and monetary policy measures, housing sector reforms and other policy incentives for the housing sector in reviving construction sector activity and GVA growth in the post- COVID period.

Keywords: Construction sector; economic growth; dynamic factor model; Granger causality (search for similar items in EconPapers)
JEL-codes: C32 O47 (search for similar items in EconPapers)
Date: 2021-12-13
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:111059

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