FDI Norms May Be Eased by Government to Revive Real Estate Sector

Kishan Thakkar K

Introduction

The government has decided to introduce a few modifications in the Foreign Direct Investment (FDI) in the real estate sector and gave the green signal for overseas investment in completed projects. This will help the real estate sector to bounce back amid the current liquidity crunch by the lockdowns.

Experts are acknowledging this decision of the government and hoping for the revival of the sector especially the projects that are pending due to lack of funds.

According to the data released by Department for Promotion of Industry and Internal Trade Policy (DPIIT), construction is the third-largest sector in terms of FDI inflow.

The government of Prime Minister Narendra Modi is struggling to revive the economy and generate employment in the country. By permitting LLPs, the government opens up a new investment avenue. By 2022, India will need investment worth $777 billion for infrastructure development.

Government data show that the construction sector attracted $25.7 billion in foreign direct investment from April 2000 to September 2020.  Moreover, easing the rules would help the Modi government reach its target of providing affordable housing to all urban areas by 2022, as well as building 100 smart cities.

The construction development sector requires foreign investors to meet specific conditions for investing. For example, investors have to lock in three years before bailing out. Allowing Limited Liability Partnership (LLP) firms to receive foreign investments will make the sector more attractive to foreign investors.

Conclusion

The ministry of housing and urban poverty alleviation had previously proposed easing norms on foreign direct investment in real estate projects to encourage investor participation in the country’s housing sector. While the real estate sector is showing positive signs, it is prevalent that the sector will have a positive trajectory for the future. During these times, it is advisable to invest in the real estate sector. If you want to be free from the hassle of the research, contact us to help you for finding your perfect investment opportunity!

Staying informed and discussing with experienced & experts while making a decision is an ideal way of making a great deal. All you have to do is contact RoodLand, which provides the best real estate services. For any queries and suggestions, contact us at info@roodland.com and discuss all of your options with us!

RoodLand is a business solution and advisory organization for the Real Estate sector. It is founded by young professionals with experience in management, marketing, finance, and digital technologies. With their innovative marketing concepts and out-of-the-box methods, RoodLand has successfully delivered amazing results across the region.

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