With emerging time, options for real estate investments in India have been coming up as one of the most lucrative ones in the world market. Keeping in view the growing economy of the country, a huge number of foreigners and NRIs are, besides the aim of investment, buying world-class accommodation in the country to resettle here. According to some IT professionals, India is offering bright opportunities to the people and that is the reason why the elite group of NRIs is no longer interested in staying abroad and is in a mood to come back and stay in India. In addition to that, real estate investors from all around the world are also entering into the field of Indian infrastructure and real estate. The major factor behind the real estate growth in the country is boom in the industries of IT and ITES that are expected to employ more than 4 million people in the coming years and consequently will increase the GDP of the country in near future. Other factors, which add to the options for real estate investments in India are that English is one of the most widely spoken languages in the country and it has a vast talent pool churning out more than fifteen million graduates per year. As compared to other countries, the cost of man power is also cheaper by at least 10-14%. The investors or buyers can borrow loan for 90% of the money needed to purchase a property so that they can get into the deal with only 10% down payment and in addition to that, it will also give them 10 times of return also as compared to stock markets. Due to the increasing value of land in the country, the value of the properties is expected to rise rapidly in near future, thus providing more and more benefits to the investors and buyers.
Options for real estate investments in India provide such diversity as they include lands, residential properties, commercial properties, offices, guest houses, hotels, bungalows, resorts, shops and flats and the results and benefits are the most promising ones. Whether you are looking for a sea-side residential complex, hill-side retreat, farmland, agricultural land or an apartment in one of the most bustling cities, you can find them all in the magnificent country. If you are more interested in investing in land, then you can invest your money into commercial land, land for schools, resorts or hospitals and land for shopping malls, houses. If you are looking to invest in industrial premises or a factory, then the vast rural area of the country provide you with lands of large sizes at cheap prices.
Foreign Investments In India
Foreign direct investment continues to play an important role. India has the opportunity to become a manufacturing hub for textiles, automobiles, steel, metals, petroleum products etc. for the world market. In 2005, FDI was estimated at $ 4 billion, without counting reinvested earnings and other capital. The ministry of commerce estimates an investment of Rs 1 trillion in these SEZs in the next few years and employment generation of 5, 00,000.
The Government of India (GoI) first launched the concept of SEZ in the Exim Policy 2000 to boost the country’s exports and attract FDI. International experience shows that SEZs are pockets of manufacturing excellence which apart from driving export growth and attracting FDI are also contributing tremendously to generation of employment and thereby contributing significantly to the economic growth of the country.
Since the inception of the SEZ policy in India, 14 SEZs are in operation and more than 140 SEZs have been approved. The SEZ policy framework also comprises an attractive package of incentives, including several fiscal concessions for the developers of the SEZ and the units to be set up in these SEZs. The SEZ Act has been passed and the SEZ rules and regulations have been put in place.
Second, international experience shows that private sector has limited experience in development of these zones. So, it probably makes more sense to develop these SEZ projects under the public-private partnership format where the state governments concerned jointly market the zone along with the private developer. This would increase the “comfort level" of the locating industries.
Though the Government has hiked the sectoral cap for FDI over the years, it is time to revisit issues pertaining to limits in such sectors as coal mining, insurance, real estate, and retail trade, apart from the small-scale sector. Government should gradually put more sectors under automatic route for FDI. Bringing more sectors under the automatic route, increasing the FDI cap and simplifying procedural delays need to be addressed with more vigour.
Various sops are provided to foreign investors setting up export oriented units (EOUs), Special Economic Zones (SEZs), or industrial and electronics hardware parks. SEZs in India have increased their performance in recent years. However, there is an urgent need to improve these SEZs in terms of their size, road and port connectivity, assured power supply, flexible labour laws and decentralized decision-making.
India’s advantage lies in its strong economic growth prospects, availability of large and skilled workforce, comparative advantage in several industries, a strong policy framework, availability of supporting ancillary industries, strong growth in the external sector and a huge domestic market.
These factors, combined with a proactive role from the government in marketing the SEZs, will go a long way in providing the much-needed momentum in development of SEZs and in attaining the overarching objective of boosting India’s exports and attracting export related foreign direct investment (FDI) .
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