The next generation technologies like device-to-device ( D2D ) and small cells employ small scale multiple input multiple output ( MIMO ) systems for peer-to-peer ( P2P ) communications. Due to higher spectral and energy efficiencies , spatial modulation (SM) has become one of the dominant next generation technologies. To maximize spectral efficiency and user experience, high rate SM variants like fully generalized spatial modulation ( FGSM ) can be employed for P2P applications. Due to insufficient spacing between antenna elements of devices, access points (AP), millimetre wave ( mmWave ) and sub- THz bands of operations, the performance of SM variants are hindered in P2P scenarios. The average bit error rate ( ABER ) performance of FGSM is severely degraded by atleast 13 dB under spatially correlated channel conditions. To enhance the performance of FGSM , three different transmit antenna selection ( TAS ) schemes are utilized, which eliminate transmit antennas with maximum spatial correlation. First TAS scheme performs antenna selection based on spatial correlation angle alone, whereas other two schemes use channel capacity in addition to spatial correlation angle. Through extensive Monte Carlo simulations, it has been proved that TAS based on spatial correlation ( TAS -SC- FGSM ) scheme offers a performance gain of at least 8 dB over conventional FGSM without antenna selection ( FGSM - NTAS ). TAS -SC- FGSM also outperforms other two hybrid TAS schemes at the cost of higher computational complexity.