India, with a population of over 1.2 billion requires manifold increase in resources and faster development which should be able to cater to the needs of its ever increasing requirements. The successive governments in the country had accepted the fact to support the growth of Infrastructure and also framed various policies to achieve the same. The internal hurdles faced by coalition governments and the gaps in demand and supply of resources kept on defeating the policies at various stages. The 16th Lok Sabha elections were different from earlier elections where the country has seen a political party which was for most of the period sitting in Opposition, projecting a person as its Prime Ministrial candidate. Mr. Narendra Modi who has already proved his mettle in Gujarat as Chief Minister of State was projected as symbol of Development. The election manifesto of Bhartiya Janata Party which was considered to have been drafted on the lines of dictats of Mr. Narendra Modi, had besides other promises given prime place to the Infrastructure Development in the country. Soon after assuming the seat of Prime Minister he released a list which highlights his priority for: Education, Health, Water, Energy, Roads, Infrastructure and investment reforms, stability and Sustain ability in government policy.
The development of Infrastructure directly influences Real Estate in the comman area as the infrastructure development leads to growth of Agriculture, Industry Services and Business (ISB) sector resulting in Employment Generation and higher standard of living all of which need more and more space for their existence.
Public Private Partnership (PPP)
Narendra Modi Government is not averse to PPP and with a clear majority in the Government it may not be difficult for him to have a smooth sail with the policy which prescribed protection of National interest.
Foreign Direct Assistance (FDA)
Though the BJP had earlier opposed foreign direct investment in retail it is reportedly condering FDA upto 49% in various sectors to bridge the gaps in demand and supply of funds required for growth. The investors inland and abroad flush with funds are waiting for a stable government with transparency and sustainability in its policies and only need a boost to their confidence with continuous reforms.
Any development brings additional revenue for the government in the form of additional or new taxes. Sharing of revenue generated between the Centre and State has always remained a burning issue. The GST policy drafted by erstwhile UPA Govt. may streamline and solve the problem of revenue sharing between the governments.
In the first quarter of its existence the Modi Government had given indications that it is serious for implementing its manifesto and if it succeeds in crossing hurdles no wonder Real Estate sector has brighter outlook during the next 5 years.