The Indian government is likely to announce a slew of measures to boost construction activities in the country in the forthcoming national budget to be placed before India’s parliament on February 1, government sources said on Wednesday, January 27.
The sources said that the measures likely to be announced in the national budget include relaxation of rules for foreign direct investment (FDI) in construction projects and a credit-linked subsidy scheme for construction of affordable housing.
Under relaxed FDI norms, the budget is expected to propose 100 percent FDI in certain legal corporate entities involved in construction projects like limited liability partnerships (LLPs), which are currently not permitted, the sources said.
The government has estimated that the country will need an estimated $777 billion in total investment in the construction industry to revive it from the impact of the pandemic, the sources said.
Government data indicates that the construction industry received total FDI of around $25 billion in the April-September period of 2020.