New Delhi, Jan 7 (UNI) Commerce and Industry Minister Kamal Nath, has said that the developments in real estate sector symbolize the changing face of India and it is a reflection of growth in the economy brought about by high rates of GDP as well as by country's integration with the global economy.
Speaking at the 'National Convention NATCON 2008: Real Estate for All' organised by the Confederation of Real Estate Developer's Association of India (CREDAI), here today he said in the recent years, service sector has been the main driving engine of Indian economy's growth.
''With the economy on an upswing, the emphasis and requirement today is on creating international standard infrastructure and housing facility to sustain 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,'' Mr Nath said.
The Minister further stated 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. However, 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.
''While the role of the Government is expected to be primarily as a facilitator to the development process, the private sector participation is aimed at bringing technical and managerial expertise in delivering good quality mass housing projects. It is a good sign that many State governments are joining hands with private entrepreneurs in resolving the acute housing problem in urban areas,'' Mr Nath added.
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, he stressed.
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