Consumption driven lifestyle

The Indian economy is undergoing a transformation right before our eyes. India has transformed itself from a predominantly agriculture driven economy to one that is Services driven. The share of Services sector in India's GDP has now grown to 58% in 2004-05. A large pool of highly qualified English speaking workforce coupled with low labour cost has already made India a major outsourcing hub. Burgeoning middle-class, low interest rates and a consumption driven lifestyle are expected to further boost the Services sector. But sustained growth in Services will also to a large extent depend on India's investment in its Infrastructure.

The growing realization about this fact is reflected in India's Infrastructure spends which by FY 04-07 is projected to increase to a whopping Rs. 8340 bn from Rs.3955 bn in FY 01-04. Be it roads, railways, airports, telecommunication or urban infrastructure. Every aspect of infrastructure is seeing investments from both the public and the private sector. Thus there exist a strong linkage between the two and it is the combination of these booming sectors that makes for an ideal investment opportunity. Principal Infrastructure and Services Industries Fund