Real Estate Market in India Likely to Get a Boost Due to Approved FDI Proposals
Investment sentiments of consumers in India might soon improve, as the government has given its consent to 25 proposed Foreign Direct Investments (FDI). While the FDIs are not going to be placed directly in the real estate market, they would, however, play an important role in reviving the country’s economy, imbuing similar effects on the real estate market.
The Foreign Investment Promotion Board (FIPB) made recommendations in favour of 25 FDI proposals, worth approximately Rs 1,546 crore, which were shown the green flag subsequent to a meeting held on August 29, 2014.
The sectors that would directly benefit from these approvals would be multi- and single-brand retail, defence, pharmaceuticals, and telecom. While these markets would reap the first-hand benefits, the real estate market would also bask in the growth prospects and real estate demands these establishments would create.
The company that received the green signal include M/s Camzena Holdings, who had sought for the infusion of auxiliary FDI by subscribing to shares on a right basis and the transfer of its shares to the applicant company. This company would be investing close to Rs 16.94 crore in the pharmaceutical sector of India. Another company that got the thumbs up from the Indian Government is M/s Flemingo International (BVI) Limited, which will be investing Rs 150 crore establishing a wholly-owned subsidiary in India.
The real hero of the approvals is the proposal to invest Rs 500 crore through Indiareit Real Estate Fund Scheme-I, which received clearance from the government, bringing in good news for NRI Investments. This investment would be undertaken by the applicant with apt certification of source of funds and full details of the NRI investors to maintain safety of transactions and transparency.
The generous approvals by the government in various fields have opened up the growth prospects for the economy, and indirectly for the real estate market, which is a strong pillar of the economy of India. The government’s open arms to these investments can play an important role in improving market sentiments for the residential and commercial sector.
Source: BusinessInsider
FDI proposals, FIPB, Foreign direct investments, Foreign Direct Investments (FDI), Foreign Investment Promotion Board, IndiaReit equity fund, Real-estate market
