Government Initiatives to Boost up Indian Real Estate Sector
One of the most revenue generating sectors of any country is Real Estate as the growth and downfall of real estate both affect the economy of any country. In India government is keeping a proper track of the development in this sector. New policies and laws are made and implemented by the government in order to bring in growth in the real estate. All these policies are giving investors and buyers a boost so that this market can improve.
To give the real estate market a boost government is taking numerous actions such as RBI has come out with different concessional schemes and given banks the authority to chalk out new schemes that will benefit this sector, the Urban Land Ceiling and Regulation Act has been repealed by various states, Government Increased share of FDI, 100% FDI is allowed but through automatic route. Government increases the fund for Urban Development from US$ 660.3 million to US$ 1.17 billion. The minimum area which can be developed in terms of integrated townships has been reduced to 25 acres from 100 acres to help the developers in making more profits. Amount of share for the Rajiv Awas Yojna has been increased from US$ 32.4 million to US$ 274 million. Now for joint ventures and wholly-owned subsidiaries, the minimum capital investment is US$ 5 million and US$ 10 million, respectively.
Government increases its funds for Housing from US$ 183.4 million to US$ 215.8 million and also granted a tax holiday on profits that initiates in the financial year 2007-2008. Investing on housing projects of unit type of 1000 to 1500 square feet will prove to be highly beneficial. All the steps taken by the government has speeded up the development of SEZs by making the procedure of getting the tax-free industrial enclaves notified easier thereby easing the developers. Government churns out huge amount of profit of real estate sector so it ensures that the investment in it is done without many obstructions. Apart from these initiatives, there are various others that the government has taken to boost the growth of real estate.