With the slowest pace, GDP growth of India in fiscal year 2013 is estimated to be 5.7 per cent. Numerous factors have affected the GDP growth of the India but the main reason behind the low GDP growth is Government’s decision making in the past few years. The government is taking required measures to increase the GDP in the second half of the fiscal year. The government observed the high fiscal deficit of 5.2 per cent in FY2013.The government has taken many decisions in the past two quarters regarding the real estate sector which is in favor of the real estate sector of the country. While taking decisions in past few quarters, government has concentrated on two main aspects which are housing sector will be separated from the overall real estate industry and government will primarily focus on intended beneficiary while providing incentives. Fw of the government’s decisions which benefited for the Indian Real Estate.Government has allowed External Commercial Borrowing (ECB) for low cost affordable housingReserve Bank of India has allowed the External Commercial Borrowing (ECB) in the low cost affordable housing projects along with the Slum Rehabilitation Projects. The main benefit of this decision will be for the projects which will have the 60 per cent of the total permissible FSI reserved for units with maximum carpet area of 60 sq meters. ECB will provide huge capital advantage if the borrower can deal with the exchange rate risk associated with overseas borrowing.Interest on affordable housing has been deductedConsidering the first time home buyers government has allowed an additional deduction in loan interest for affordable housing. The deduction of Rs 1,00,000 which will be permitted only for the loan amount below Rs 25,00,000 and it can be claimed within two years from FY 2013-14. The limit of 25,00,000 is decided considering the lower and middle income groups of the population. Though government finances are constrained, government wants to provide maximum benefits to the group of the population which requires the finances most.Financial assistance for Rural Housing has been increasedTo increase the housing stock in India government has allotted the National Housing Bank (NHB) to raise the funds for rural housing development. The government has recently increased the funds by 50 per cent which is allocated for the rural housing. The amount of financing has increased to Rs 60 billion compared to the last year’s Rs 40 billion. Due to finances from government the 4,00,000 families are benefited from it as they have taken the loans for housing development. Along with this government has also announced the setting up of funds to increase the financing option for rural housing development. On the other hand for the urban housing finances of Rs 20 billion have also announced by the NHB.The government has taken various decisions which benefited the consumers as well as the complete real estate sector of the country. The government is planning on dividing the housing sector from the complete real estate sector which will be beneficial for the better management of the projects and developments.