Sunday, 2 November 2014

23:32

Union Cabinet Approved Proposal to Amend FDI Policy in Construction and Real estate on 29th October 2014

Union Cabinet on 29th October approved the proposal to Amend FDI Foreign Direct Investment Policy in Construction and Real Estate sectors. The proposals came in the Backdrop of depleting FDI inflows in construction and real estate.

Union government decided to use relaxed rules for FDI in the construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms to boost the construction and real sector.

Earlier in 2005, although 100 percent foreign direct investment was allowed in townships, housing and built-up infrastructure and construction developments, the government imposed certain conditions.

After the relaxation, the FDI inflows in the construction sector witnessed a steady rise during 2006-07 but have stared declining in 2009-10.
The construction sector received FDI worth 23.75 billion US dollar or 10 percent of the total FDI attracted by India during the period between from 2000 to 2014.

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