Infrastructure status- Demand for the real estate industry
In the 1990s Narasimha Rao led government with the help of the then Finance Minister Manmohan Singh had come up with the liberalisation of the Indian economy, and allowed foreign companies and the competition to come to India. In the initial years there was a lot of opposition by the local companies, however slowly the IT and ITES sector boomed providing jobs to millions of youth. Due to increase in income the buying power increased and banking, real estate, retail and all other sectors saw an increase in demand.
As a result of this after 23 years of liberalisation of the Indian economy, there has been a boom in the construction and real estate industry. This sector has provided growth to the 250 ancillary industries; however it has not yet been given the much-needed industry status it deserves despite many petitions to the central government. Over 9,000 developers covering 22 states and 128 city chapters across the country, who are a part of CREDAI (Confederation of Real Estate Developers’ Associations of India), have requested the union government to accord real estate with the official recognition of an industry status. Ahead of the Union budget which is scheduled in July, CREDAI wants the government to issue the infrastructure status to the real estate industry.
If the sector gets the much awaited infrastructure status, then securing loans and financial aids will be very easy and since the project costs are huge, often they get stuck due to lack of finance. This industry provides jobs to millions and plays an important role in the development of the country’s infrastructure base.
Source- Financial Chronicle
Demand for the real estate industry, Infrastructure, liberalisation of the Indian economy, Narasimha Rao led government
