How Modi governments multi-model infrastructure development is giving a big push to the real estate sector
Easy fund flow and infrastructure first approach adopted by the Modi government has helped real estate growth across India.
In line with its aim to enter the $5 trillion club economy by 2025 – which is highly dependent on real estate and infrastructure – the Modi government has taken a multi-modal approach towards infrastructure development in the country over the last five years. Besides boosting the overall economy, this 'infrastructure first' approach is also steering real estate growth across India, say experts.
Speaking on the matter Anuj Puri - ANAROCK Property Consultants says, “Infrastructure is the lifeline of a country’s economy. The continued financial and policy support from the Government over the past 5 years is a testimony to its unrelenting focus on this sector and its inherent benefits. With more policies focused towards development of roads and highways, railways, ports, airports, urban infrastructure and industrial corridors, India has garnered a uniquely proactive positioning globally." However, Puri didn't fail to point out that the sector still faces several challenges pertaining to clearances, delays, etc. which need to be urgently addressed.
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“Despite it's proactive via various policies favouring all-round development of physical infrastructure, the Government must focus on implementation and the fastest-possible pace,” said Anuj Puri of ANAROCK Property Consultants.
Elaborating on the matter Rakesh Yadav, CMD, Antriksh India Group said, "Infrastructure and real estate together contribute around 29.5 per cent to India’s Gross Domestic Product (GDP), which is higher than the US (22.6 per cent) and China (17.6 per cent). Budget allocations in infrastructure sector saw a massive jump from $791 bn in 2014-15 to $2,042 bn in 2019-20." Highlighting the easily available credit line Yadav of Antriksh Group said, "Infrastructure sector attracted massive FDI worth Rs 207 bn in last 5 years backed by the growing economy and strong fundamentals."
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