CHINA, JAPAN, AMERICA, SINGAPORE ETC PLEDGE SUPPORT TO INDIAN HOUSING AND INFRASTRUCTURE SECTORS
INDIAN HOUSING AND INFRASTRUCTURE HAS BIG POTENTIAL FOR FDI
MODI GOVERNMENT'S EFFORTS TO OPEN UP ECONOMY WILL SUPPORT INDIAN REAL ESTATE DEVELOPERS ALSO – ANIL MITHAS
The Modi government seems to be very committed to fulfill Bhartiya Janata Party’s election promises of developing 100 cities and housing for all by 2022 besides upgrading infrastructure to provide overall growth in the country. The efforts are visible both at domestic and international level.
At domestic level the most important steps are finalization of much awaited Real Estate (Regulation and Development) Bill 2013 and preparations for launch of Housing Mission, an integrated policy in which all the earlier schemes like Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Indira Awaas Yojana, Rajiv Awaas Yojana etc will be merged into one umbrella policy. These efforts will put all the required regulatory and standardization mechanisms in place, streamline all the present housing schemes to make them more accessible and manageable.
As per a high-powered committee set up by the Urban Development ministry Rs 7.5 trillion would be needed over 20 years to improve infrastructure relating to transport, water supply, sewage and sanitation in the selected cities. More over for just preparation of detailed project reports and mandatory city development plans for 100 smart cities, state governments will have to spend Rs 5000 crore. A part of which will be financed by the Centre. The selection of smart cities has been left to the states.
But the billion dollar question remains – how will the Modi government raise funds to fulfill its poll promises in housing and infrastructure sectors? Government can impose more taxes on citizens; make housing schemes more realistic and viable by bringing them at par with the real cost to reduce financial burden on the government or simply pump in more subsidies without caring for fiscal deficit. Some other means of resource mobilization could be through multi-lateral and bilateral development agencies, municipal bonds, pooled municipal debt obligation facility, real estate investments and infrastructure investment trusts etc. Government can take loans also from international financial institutions.
The Modi government’s ambitious plans in housing and infrastructure sectors have opened countless new opportunities for Indian private sector also. The option that can bring up-to-date international construction technology and money to India without burdening government coffers is FDI (foreign direct investment). And the Modi government seems to be really serious about that and there is a reason also behind this.
According to a report of ministry of External Affairs the construction and development sector (township housing, built-up infrastructure) attracted maximum FDI, second only to service sector during 2012 despite all negative reports of policy paralysis of the Manmohan government. As per a report of KPMG in India and National Real Estate Development Council (NAREDCO) demographic statistics suggests that India can be a leading destination for real estate business globally. The country has urban population equivalent to the total population of Unites States of America and United Kingdom and about 100 million people are moving to the cities annually. The strong growth, coupled with 18.8 million housing shortage requires no mathematical genius to understand the potential. It is estimated that the size of real estate sector may increase five-fold to reach USD 676 billion by 2025. This phenomenal growth is expected to provide strong opportunities to global real estate stakeholders as significant technical and financial support lacks in India.
In all his foreign visits or interaction with visiting foreign dignitaries Prime Minister Narendra Modi has been discussing this issue. When Singapore’s foreign minister K Shanmugam met Prime Minister in July this year he told him that his government plans a major thrust in low-cost and affordable housing and sought his country’s assistance in construction technology for this purpose.
When Prime Minister visited Japan last month, he discussed this issue with his Japanese counterpart Shinzo Abe also and Japan promised to give $35 billion to India through public and private funding over the next five years for developmental projects including smart cities and cleanup of river Ganges.
On his visit to India, Chinese President Xi Xinping also promised to invest around US $20 billion in India in next five years. He also promised to support India to revive her aging railways and support two industrial parks in Gujarat and Maharashtra thereby giving major boost to housing activities in both these states.
Prime Minister Narendra Modi’s visit to America also set up a mile-stone in Indo-U.S. cooperation in the field of housing and infrastructure development as both sides agreed to establish an Infrastructure Collaboration Platform convened by the Ministry of Finance and the Department of Commerce to enhance participation of U.S. companies in infrastructure projects in India. India and U.S. also agreed to offer U.S. industry to be the lead partner in developing smart cities in Ajmer (Rajasthan), Vishakhapatnam (Andhra Pradesh) and Allahabad (Uttar Pradesh).
America also agreed to a new partnership to advance the Prime Minister’s goal of improved access to clean water and sanitation for all and support the Prime Minister’s 500 Cities National Urban Development Mission and Clean India Campaign.
Mr Anil Mithas, CMD, Unnati Fortune Group has hailed the Modi government’s plans to revitalize housing and infrastructure sectors. He said that many of the government’s steps in financial sector like easing norms for direct foreign borrowings can help private players too in real estate sector. He said that the involvement of foreign players in twin sectors of housing and infrastructure will give boost to private developers also as they can enter into partnership with them especially in construction and marketing of projects.
For more Information Visit Us- https://www.unnatifortune.com
INDIAN HOUSING AND INFRASTRUCTURE HAS BIG POTENTIAL FOR FDI
MODI GOVERNMENT'S EFFORTS TO OPEN UP ECONOMY WILL SUPPORT INDIAN REAL ESTATE DEVELOPERS ALSO – ANIL MITHAS
The Modi government seems to be very committed to fulfill Bhartiya Janata Party’s election promises of developing 100 cities and housing for all by 2022 besides upgrading infrastructure to provide overall growth in the country. The efforts are visible both at domestic and international level.
At domestic level the most important steps are finalization of much awaited Real Estate (Regulation and Development) Bill 2013 and preparations for launch of Housing Mission, an integrated policy in which all the earlier schemes like Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Indira Awaas Yojana, Rajiv Awaas Yojana etc will be merged into one umbrella policy. These efforts will put all the required regulatory and standardization mechanisms in place, streamline all the present housing schemes to make them more accessible and manageable.
As per a high-powered committee set up by the Urban Development ministry Rs 7.5 trillion would be needed over 20 years to improve infrastructure relating to transport, water supply, sewage and sanitation in the selected cities. More over for just preparation of detailed project reports and mandatory city development plans for 100 smart cities, state governments will have to spend Rs 5000 crore. A part of which will be financed by the Centre. The selection of smart cities has been left to the states.
But the billion dollar question remains – how will the Modi government raise funds to fulfill its poll promises in housing and infrastructure sectors? Government can impose more taxes on citizens; make housing schemes more realistic and viable by bringing them at par with the real cost to reduce financial burden on the government or simply pump in more subsidies without caring for fiscal deficit. Some other means of resource mobilization could be through multi-lateral and bilateral development agencies, municipal bonds, pooled municipal debt obligation facility, real estate investments and infrastructure investment trusts etc. Government can take loans also from international financial institutions.
The Modi government’s ambitious plans in housing and infrastructure sectors have opened countless new opportunities for Indian private sector also. The option that can bring up-to-date international construction technology and money to India without burdening government coffers is FDI (foreign direct investment). And the Modi government seems to be really serious about that and there is a reason also behind this.
According to a report of ministry of External Affairs the construction and development sector (township housing, built-up infrastructure) attracted maximum FDI, second only to service sector during 2012 despite all negative reports of policy paralysis of the Manmohan government. As per a report of KPMG in India and National Real Estate Development Council (NAREDCO) demographic statistics suggests that India can be a leading destination for real estate business globally. The country has urban population equivalent to the total population of Unites States of America and United Kingdom and about 100 million people are moving to the cities annually. The strong growth, coupled with 18.8 million housing shortage requires no mathematical genius to understand the potential. It is estimated that the size of real estate sector may increase five-fold to reach USD 676 billion by 2025. This phenomenal growth is expected to provide strong opportunities to global real estate stakeholders as significant technical and financial support lacks in India.
In all his foreign visits or interaction with visiting foreign dignitaries Prime Minister Narendra Modi has been discussing this issue. When Singapore’s foreign minister K Shanmugam met Prime Minister in July this year he told him that his government plans a major thrust in low-cost and affordable housing and sought his country’s assistance in construction technology for this purpose.
When Prime Minister visited Japan last month, he discussed this issue with his Japanese counterpart Shinzo Abe also and Japan promised to give $35 billion to India through public and private funding over the next five years for developmental projects including smart cities and cleanup of river Ganges.
On his visit to India, Chinese President Xi Xinping also promised to invest around US $20 billion in India in next five years. He also promised to support India to revive her aging railways and support two industrial parks in Gujarat and Maharashtra thereby giving major boost to housing activities in both these states.
Prime Minister Narendra Modi’s visit to America also set up a mile-stone in Indo-U.S. cooperation in the field of housing and infrastructure development as both sides agreed to establish an Infrastructure Collaboration Platform convened by the Ministry of Finance and the Department of Commerce to enhance participation of U.S. companies in infrastructure projects in India. India and U.S. also agreed to offer U.S. industry to be the lead partner in developing smart cities in Ajmer (Rajasthan), Vishakhapatnam (Andhra Pradesh) and Allahabad (Uttar Pradesh).
America also agreed to a new partnership to advance the Prime Minister’s goal of improved access to clean water and sanitation for all and support the Prime Minister’s 500 Cities National Urban Development Mission and Clean India Campaign.
Mr Anil Mithas, CMD, Unnati Fortune Group has hailed the Modi government’s plans to revitalize housing and infrastructure sectors. He said that many of the government’s steps in financial sector like easing norms for direct foreign borrowings can help private players too in real estate sector. He said that the involvement of foreign players in twin sectors of housing and infrastructure will give boost to private developers also as they can enter into partnership with them especially in construction and marketing of projects.
For more Information Visit Us- https://www.unnatifortune.com