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Construction : Real Estate | October 2013 | Source : Construction Update

India may ease FDI norms to boost affordable housing

The Indian government is expected to relax norms for foreign direct investments (FDI) in real estate sector as part of its foreign direct investment policy. As a result, in real estate sector foreign investors may be allowed to bring in only $5 million as minimum capital, down from the current $10 million, if the Cabinet approves the proposal of relaxing the conditions for FDI in the sector. Though 100 per cent FDI in the construction development sector is allowed through automatic route, the Department of Industrial Policy and Promotion (DIPP) is looking at relaxing the conditions for investment to boost the cash-strapped sector. The funds will have to be brought in within six months of commencement of business of the company. This has been done keeping in mind low and affordable housing, sources in the government said. The Union Cabinet note will be circulated this week in this regard for comments.
 
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