With an annual growth rate of above 30%, Indian real estate is one of the fastest growing sectors of the country. The construction sector is the second largest employment generator in the country. It holds a 5% share in the GDP growth. The initiatives taken by the Government has helped streamline the potential of this multidimensional sector.
Recognizing the contributions of this segment towards the growth of the Indian economy, the Government will be conferring the status of ‘INDUSTRY’ to the Indian real estate sector. Bestowing such a status will definitely benefit the Indian realty since this will make funding more transparent. The Government has sent out official notifications confirming this reform agenda. A proposal in this regard has been submitted to the finance minister. A committee will be formed to assess the progress of this reform. The Panel will comprise of the urban development, finance and housing ministries. The process is expected to reach completion prior to the next budget.
The rechristening of the realty sector will make loans and finance easily available to the Developers at reasonable interest rates from the banks. Previously, due to the lack of a full-fledged identity, real estate was deprived of the many such supportive benefits. But now with the sector attaining industry status, more such beneficiaries are on the way to foster its growth and development.
The infrastructure sector is also a part of this reform agenda. This sector will also be attested with the industry status in parallel to the real estate sector.