FDI in construction News

 The government is moving ahead with further opening of print media, construction and retail sectors to foreign investments, and detailed deliberations in this regard were held in the finance ministry on Wednesday.

Finance Ministry on Tuesday said the relaxation of FDI norms in as many as 15 sectors by the government will help open floodgates of investment in the country.

After recently liberalising foreign direct investment norms for construction development sector, the government is expected to soon come out with some clarifications on the rules of the policy.

Welcoming the decision, realtors' apex body CREDAI President C Shekar Reddy said it would help developers get an extra route of funding their projects.

The Cabinet decided to reduce the minimum floor area to 20,000 sq mt from the earlier 50,000 sq mt. It also brought down the minimum capital requirement to USD 5 million from USD 10 million.

The move was aimed at attracting more foreign investment in construction and real estate sector.

The government Monday said it is working on the proposal to liberalise foreign direct investment (FDI) norms in the construction sector.

Indian real estate market witnessed a significant change in the last decade mainly backed by opening up of FDI in the sector and shift in preference to high-rises over traditional low-rise structures, according to a report.