The government on the past month has strongly placed various policy level initiatives to boost our economy. Being Asia’s third largest economy, India earlier outgunned China and US in terms of economical growth. These reforms have been put forward to ease the business doing in India and promoting the Make in India campaign, which has already shown its impact on the market.
The main among them is the FDI (Foreign Direct Investment) itself. In this month, Modi Government has proposed FDI norms for as many as 15 sectors including defence, broadcasting, retail and construction sector. By doing so, the government has enhanced the jurisdiction limit of Foreign Investment Promotion Board (FIPB) from Rs 3,000 crore to the current amount of Rs 5,000 crore. In a notable statistics by the government, India has witnessed $19.39 billion FDI inflow during the April- June period. This amounted to an increase of FDI inflow by 29.5 percent than a year ago, which undoubtedly is a significant success.
In order to enhance the Power sector, the cabinet has passed an ambitious $7 billion debt recast to revive the loss making state utilities. The Ujjwal Discom Assurance Yojana (UDAY) will enable them to regain the thrush hold of discoms and move along in a sustainable way. As part of this scheme, the state governments will have to take over 75 percent of the debt of the distribution companies and these loans will not be included in the calculations of the state’s fiscal deficit till 2016-2017 financial year. This conversion of loans into bonds can be noted to save Rs 12,000 crore for the Public Sector Banks.
However, the major highlight of this week for which everyone laid their eye on was the proposal of the seventh pay commission. The proposal revealed a pay hike of upto 23 percent for 4.2 million central government employees and another 5.2 million retirees. By the move government has pleased a huge mass of people. The biggest among the beneficiaries will be the pensioners itself as touched with the OROP (One Rank One Pension).
The next reform has taken the National Highways Authority of India into the frontline of development. The government has allowed the NHAI to pay compensation to road developers for delays which are not attributable to them. This move will generate much hope and credibility to the road developers and are estimated to unlock an investment of Rs 35,000 in various stalled road projects across the country. A report revealed that almost 3,500 km of road projects will be revived by the move. By flourishing road network, real estate sector can be anticipated soon to pierce the various hinterlands in the immediate future itself.
With these reforms and statistics, government has really gone to a notable extend for our economical boom. India will soon witness more severe development activities just like the present days. Being one of the anchoring segments of the Indian economy, real estate will also be hailing to new heights from now on. No one can disagree that the real estate has broken the contemporary shackles and played a notable role in the face lifted of developing India. Real estate has facilitated an ideal breed ground for the developmental activities to flourish. Good days are ahead and real estate will remain the supreme investment in this development friendly atmosphere of India, as it has been in all times!