Union Minister of Commerce and Industry, Mr. Kamal Nath said that rapidly increasing real estate sector signifies the varying face of India, while addressing NATCON (National Convention) 2008. He said that in recent years service sector has directed Indian economy. Considering the recent economy growth, Mr Kamal spoke on the requirement of creating international standard infrastructure and housing facility to carry on the growth rate projected in the 11th Five Year Plan. “The Real Estate Development sector has the capacity to pay for itself without straining the limited resources of the State Government”, Shri Kamal Nath stated.
Mr. Kamal Nath further said that we have already opened construction development sector for FDI and the policy permits wholly owned subsidiary in this sector in India by a foreign company. “Of course, there are conditions regarding minimum area for development and minimum capitalization to be brought in by the foreign investor. A number of global players have entered the Indian market and many more have shown interest. Growth and investment have also created opportunities for investment in real estate sector”, he said. Further he included that the Government is playing its part as the launch pad to the development process and the private sector participation is required to bring technical and managerial expertise in delivering good quality mass housing projects. The fact that many State governments are joining hands with private entrepreneurs in resolving the acute housing problem in urban areas is a good step in this regard. The private sector and Government has to work in tandem towards a common goal. It is equally important to address the institutional and regulatory aspects as well as strengthen and expand the capacity of financing institutions for further growth of the sector.