(Aditya Shaw, Intern Journalist): The government is rethinking its foreign direct investment (FDI) policy regarding the real estate sector. There is a possibility that 100% foreign investment can be approved in the real estate sector. If this happens, it will help real estate companies to overcome the shortage of money. It has increased significantly among the Corona. This step will compensate for the loss of the economy due to real estate.
An official said that there are only a few sectors where FDI rules can be relaxed. The housing sector is one of them. To make the process easier and to make an investment in India easier, the Department of Industry and Internal Trade Promotion (DPIIT) is now focusing on mining and other sectors as well. There are still many restrictions
The department plans to get up to 74 percent approval from the Cabinet for foreign investment in defense manufacturing through the automatic route. The limit of foreign investment in defense has been increased keeping in view self-reliant India. After this approval, the information will also be given by the DPIIT.
At present, 100% of the foreign investment from the automatic route in India is in construction, residential and commercial buildings, roads, bridges, hotels, resorts, hospitals, educational institutions, recurring facilities, etc. Another person related to the case said that the policy is being studied carefully. Its purpose is to stop speculation in the sector.
Experts say that the pace of tax collection and disinvestment is expected to increase. Therefore, foreign investment is the only way through which liquidity can be brought into the system. This will help in reviving economic activities.
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