The scholarship, named ‘Professor Jaswant G Krishnayya Merit Scholarship,’ will be awarded annually to an eligible student who achieves the highest CGPA in the first year of the PGP program. Mr. Murthy has committed to funding the scholarship for 20 years. The aggregate payout for the scholarship over 20 years is estimated at ₹12 crores.

Pankaj Patel, Chairperson, IIMA Board of Governors and Chairman, Zydus Lifesciences, remarked, “Mr. Narayana Murthy’s bond with IIMA began in 1969 as Chief Systems Programmer and deepened further when he served as Chairman of the Institute from 2002 to 2007. This scholarship reflects his continued commitment to IIMA’s mission and to the transformative power of education. We are honoured by his gesture, which pays tribute to a respected faculty member and supports future generations of leaders.”

Prof. Bharat Bhasker, Director, IIMA, remarked, “This generous scholarship is a celebration of excellence, mentorship, and impact. We are deeply grateful to Mr. Narayana Murthy for honouring Professor Krishnayya’s legacy in such a meaningful way. It reflects IIMA’s vision of enabling merit-based access to management education while paying tribute to those who helped build this Institute into what it is today.”

Narayana Murthy stated, “I am pleased to establish this scholarship at IIMA in honour of Professor Jaswant G Krishnayya’s enduring legacy and significant contributions to IIMA. This scholarship also serves as a testament to Professor Krishnayya’s pivotal role in shaping my early life and career. I hope that this scholarship will inspire students to strive for excellence and make a positive impact on the world.”

The IIMA Endowment Fund (IIMAEF), the Institute’s unified fundraising and philanthropic arm for all donations from alumni as well as corporate and CSR partners, played a facilitative role in shaping this partnership. This is in continuation of IIMAEF’s broader vision to solidify IIMA’s prominence in thought leadership, research, and academic excellence globally, ensuring that financial constraints do not stand in the way of academic potential.

The post Narayana Murthy Launches 20-Year Scholarship at IIM Ahmedabad in Honor of Professor Jaswant G Krishnayya appeared first on NRI News.

Mumbai 13 June 2024 – Inflation, the gradual increase in the general prices of goods and services, erodes the purchasing power of money over time. For investors seeking to preserve and grow their wealth amidst inflationary pressures, real estate has emerged as a popular hedge against this dreaded but inevitable dynamic, finds ANAROCK research.

Shobhit Agarwal, MD & CEO – ANAROCK Capital, says, “After the 2019 elections, average residential prices across the top 7 cities have appreciated at a Compound Annual Growth Rate (CAGR) of 6% – rising from INR 5,600/sq.ft. in June 2019 to INR 7,550/sq.ft by the end of FY 2024. A similar trend was witnessed concerning the 2014 elections. Average prices across the top 7 cities saw an annual rise of over 6% in 2014 when compared to the preceding year – from INR 4,895/sq.ft in 2013 to INR 5,168/sq.ft in 2014.”

Price growth over the last three elections

Conversely, before the 2019 elections, average prices rose by a mere 1% annually and remained rangebound during the tenure.

Source: ANAROCK Research, Data for Top 7 cities

Supply – Demand Dynamics

In the last decade, there were periods when the supply of real estate exceeded demand, resulting in stable price growth that kept pace with inflation in the pre-pandemic era. Between 2013 and 2020, the top 7 cities recorded a cumulative supply of 23.55 lakh units against a demand of 20.68 lakh units.

Gradually, demand rose in tandem with new supply. Available inventory peaked at approx. 8 lakh units by the end of 2016. However, following the pandemic, residential real estate saw a rapid recovery, leading to significant price growth that has outpaced general inflation.

Source: ANAROCK Research, Data for Top 7 cities

Real estate – a hedge against inflation

Inflation, the gradual increase in the general prices of goods and services, erodes the purchasing power of money over time. For investors seeking to preserve and grow their wealth amidst inflationary pressures, real estate has emerged as a popular hedge against this dreaded but inevitable dynamic.

Steady population growth coupled with urbanization consistently fuels housing demand. As more people migrate to cities for better opportunities, rising residential demand exerts upward pressure on prices.

Moreover, real estate investments can generate rental income, which potentially grows over time in response to inflation. As the cost of living rises, landlords typically adjust rental rates. Also, investors can leverage their real estate assets to borrow funds for further real estate acquisitions.

During inflationary periods, the cost of borrowing (interest rates) typically rises. However, investors who have secured fixed-rate financing before inflationary pressures set in can benefit from lower borrowing costs in real terms, enhancing the profitability of real estate investments.

“Real estate investments offer diversification benefits within a portfolio,” says Agarwal. “Unlike financial assets such as stocks and bonds, which may be negatively impacted by inflationary pressures, real estate – including residential, commercial, and retail – provides a tangible asset with intrinsic value. Diversifying investment portfolios with real estate holdings can mitigate overall portfolio risk and enhance long-term returns.”

Residential real estate prices have risen continuously since 2013, and in the last two years, appreciated at a CAGR of 13% while CPI inflation moderated by 1.3% on an annual average basis to 5.4% at the end of FY24. This trend signifies a clear outperformance of real estate prices compared to inflation.

Source: ANAROCK Research, RBI

With tangible real estate, in response to growing investor demand for inflation protection, financial instruments such as real estate investment trusts (REITs) and inflation-linked bonds have gained popularity. REITs, which invest in income-generating real estate, offer investors exposure to the real estate market coupled with liquidity and diversification benefits. Similarly, inflation-linked bonds adjust their principal and interest payments based on changes in inflation rates.

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INDIA: According to a report by CRISIL Market Intelligence and Analytics, India’s inflation based on the Consumer Price Index (CPI) eased to a three-month low of 5.1% in January from 5.7% in December, largely driven by lower food prices. However, the report highlights that a further drop in core inflation to 3.5%, a 50-month low, stole the limelight.

Despite easing in January, overall food inflation remains elevated. On the positive side, rabi sowing has picked up and exceeded last year’s level, which augurs well for food inflation going forward. The report predicts that CPI inflation will average 4.5% in fiscal 2025, compared to an estimated 5.5% this fiscal. Cooling domestic demand, assumption of a normal monsoon, along with a high base for food inflation should help moderate inflation next fiscal. A non-inflationary budget that focuses on asset-creation rather than direct cash support also bodes well for core inflation.

The Index of Industrial Production (IIP) increased to 3.8% on-year in December from 2.4% in November, driven by consumption and industrial sectors. Growth in manufacturing picked up (3.9% on-year in December vs 1.2% the previous month), while growth in electricity (1.2% vs 5.8%) and mining (5.1% vs 7.0%) slowed.

The report predicts that slowing growth in manufacturing and services will lead to GDP growth of 6.4%, on average, next fiscal compared with 7.3% this fiscal. Overall, the report suggests that India’s economy is showing signs of improvement, with easing inflation and an increase in industrial production.

CRISIL Market Intelligence and Analytics

• Inflation based on the Consumer Price Index (CPI) eased to a three-month low of 5.1% in January from 5.7% in December largely driven by lower food prices. However, a further drop in core inflation to 3.5% – a 50-month low – stole the limelight.
• Despite easing in January, overall food inflation remains elevated. On the positive side, rabi sowing has picked up and exceeded last year’s level, which augurs well for food inflation going forward.
• We expect CPI inflation to average 4.5% in fiscal 2025 vs an estimated 5.5% this fiscal. Cooling domestic demand, the assumption of a normal monsoon along with a high base for food inflation should help moderate inflation next fiscal. A non-inflationary budget that focuses on asset creation rather than direct cash support also bodes well for core inflation.
• The Index of Industrial Production (IIP) increased to 3.8% on-year in December from 2.4% in November driven by consumption and industrial sectors.
• Growth in manufacturing picked up (3.9% on-year in December vs 1.2% the previous month), while growth in electricity (1.2% vs 5.8%) and mining (5.1% vs 7.0%) slowed.
• We expect slowing growth in manufacturing and services to lead to GDP growth of 6.4%, on average, next fiscal compared with 7.3% this fiscal.

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