Infrastructure Key to India’s Growth Over the Next 12-18 Months
Accelerating infrastructure projects is key for the new government to grow India at 8-10% levels, sings India Inc in chorus. However, experts have chimed in saying it would take at least 12 to 18 months for this recovery to occur.
According to a Barclays equity research report, expectation is afoot that projects worth $25 billion will be finalised over this period.
Senior Director of Deloitte India, Vishwas Udgirkar said key sectors such as ports, railways, roads, and highways need to be given priority, as growth in these sectors has slowed down significantly. Environment clearance, land acquisition, and lack of FDI (Foreign Direct Investment) are among the major issues plaguing the sector.
With political stability in sight, Indian economy as well as the real estate sector is set to improve considerably. Both domestic and international capital providers will be able to take confident strides now that a stable government is taking its place at the centre.
The key demands of the sector can be summarised as introduction of Real Estate Investment Trusts (REITs), infrastructure investment trusts, and changes in FDI and tax regulations. Granting industry status to the sector would make low-cost funding available.
Source: The Hindu Business Line
changes in FDI, environment clearance, Infrastructure, Infrastructure projects, land acquisition, Real Estate Investment Trusts, tax regulations
