A Big Boost to Construction
India has finally opened what is being touted as the "FDI Floodgates" in the contruction sector. 100% FDI is now allowed into the construction sector via the automatic route - which means that the lengthy Foreign Investment Promotion Board approval is no longer needed for such investments.
Also very importantly the limitation in terms of area to be developed has been removed (it was some 100 acres earlier which only left big townships in their purview). The limitation now is only that some 50,000 sq ft of space be developed within a specified time limit. This will bring FDI into the hearts of the cities. If the development is for an integrated township, then the limit has been brought down to 25 acres.
The boost to the FDI inflows in the country is expected to be around $5 billion, with 12-15 new developers from the Middle East, South East Asia and the US likely to come in.
Also very importantly the limitation in terms of area to be developed has been removed (it was some 100 acres earlier which only left big townships in their purview). The limitation now is only that some 50,000 sq ft of space be developed within a specified time limit. This will bring FDI into the hearts of the cities. If the development is for an integrated township, then the limit has been brought down to 25 acres.
The boost to the FDI inflows in the country is expected to be around $5 billion, with 12-15 new developers from the Middle East, South East Asia and the US likely to come in.
