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The inflow of foreign direct investment (FDI) in India decreased to around 2-year low at 1.05 billion US dollar in November 2012 because of uncertainties of the global economies. Back in November 2011, the FDI was worth 2.53 billion US dollar. The Department of Industrial Policy and Promotion (DIPP) announced that from April-November period 2012-13, inflows of FDI decreased by around 31 percent to 15.84 billion US dollar from 22.83 billion US dollar in 2011-12. The reason why inflow of FDI decreased was because of the issues arising in the global economic scenario. Economic slowdown as well as absence of political consensus on FDI-associated issues are the main causes of decline in FDI inflow.

This new rule will also give a boost to the 100 smart cities being planned by the government. Home buyers will also cheer the relaxation as fresh inflows raise the possibility of projects that are stuck getting completed and cheaper housing becoming available going ahead.

Government Relaxes FDI norms for Real Estate Sector and Construction Sector. This new rule will also give a boost to the 100 smart cities being planned by the government.

AP received first FDI Payment from Singapore. FDI create new investment corridor after getting first FDI Payment from Singapore.

The news is true. Foreign Direct Investment (FDI) norms in the construction industry in India are likely to be relaxed by the government of India. The current real estate market is highly facing liquidity crunch for which the government is looking to boost up the flow of investments in the sector. The current FDI policy demands a lock-in period of three years for the investments made in India by foreign players. The three-year time is applicable right from the date of receipt or from the date of completion of minimum capitalization, whichever is later. But the draft policy proposes to relax this lock-in period for FDIs.

FDI in the real estate sector is estimated to grow to USD 25 billion by FY22. By 2028, India's real estate market size is expected to reach USD 853 billion

According to data released by Department of Industrial Policy and Promotion (DIPP), the construction development sector in India has received Foreign Direct Investment (FDI) equity inflows to the tune of US$ 24.28 billion in the period April 2000-December 2016.

Real estate in India has been going though a dimly lit corridor during the past one year. Dip in demand for housing sector and a weak economy has resulted in sluggish sales across the country in 2012. The absorption rates in realty hubs like Dehi NCR and Mumbai have come down by about 30% and Mumbai alone has to bear the burden of around 80,000 unslod units. Launches have plummeted by 50% in most of the cities in 2012 as well.

Fast growing real estate has become the face of major Indian cities like Mumbai, Delhi-NCR, Bangalore, Chennai, etc. and increasing urbanisation paves a way for healthy demand for the sector in the future. The role of realty is considered significant in India's economy. Along with considerable contribution to gross domestic product (GDP), realty also helps to improve infrastructure in India. Real estate contributed 10.6% to India's (GDP) in 2010-11. The dismal performance of the sector becomes evident form the fact that its share of contribution came down to 6.5% in the year 2012.

The government is planning to a give easier exit window to foreign investors in construction, housing and township projects, hoping to spur greater equity inflow into the debt burdened sector and help faster completion of delayed projects.