FDI in Built-up Infrastructure
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The FDI in Built-up Infrastructure of India were mainly recorded in the areas like Hotels, Resorts, Hospitals, Educational institutions, Housing and Commercial premises. The new FDI policy of India, allows up to 100% investment under automatic route in townships, housing, built-up infrastructure and construction-development projects. The Indian states and cities like Mumbai, Delhi, Kolkata, Bangalore, Chennai and Hyderabad attracted the bulk of the FDI in Built-up Infrastructure of India, since 1990s.
The new FDI policy of India, allows up to 100% investment under automatic route in townships, housing, built-up infrastructure and construction-development projects. Further, 100% FDI is now being allowed in the Indian infrastructure industry. Today, with increased FDI in Built-up Infrastructure is attracting huge investments. Private equity players are facilitating large investments, banks are disbursing loans to builders, and financial institutions are floating real estate funds to compliment the huge demand for quality infrastructural facility in India. After reduction of the minimum mandatory area to allow FDI in real estate sector from 100 acres to 25 acres, there has been a sudden spurt in investment in infrastructural industry of India. It is expected that in the financial year 2007 - 2008, the cumulative investments by various groups into Indian infrastructural sector could rise to $1.5bn.
Last Updated on 05/08/2011
Brief history of FDI in Built-up Infrastructure industry of India:
With the opening up of the Indian industry to foreign direct investment, the infrastructure industry of India witnessed a steady growth. This growth of the built-up industry of India can be credited to the liberal government of India economic policy, effected during the early 1990s. Prior to the 1990s, the Indian infrastructure industry was insulated from foreign direct investment.The new FDI policy of India, allows up to 100% investment under automatic route in townships, housing, built-up infrastructure and construction-development projects. Further, 100% FDI is now being allowed in the Indian infrastructure industry. Today, with increased FDI in Built-up Infrastructure is attracting huge investments. Private equity players are facilitating large investments, banks are disbursing loans to builders, and financial institutions are floating real estate funds to compliment the huge demand for quality infrastructural facility in India. After reduction of the minimum mandatory area to allow FDI in real estate sector from 100 acres to 25 acres, there has been a sudden spurt in investment in infrastructural industry of India. It is expected that in the financial year 2007 - 2008, the cumulative investments by various groups into Indian infrastructural sector could rise to $1.5bn.
FDI into built-up infrastructure industry of India are being offered by institutions like the following:
- Warburg Pincus
- Blackstone Group
- Broadstreet
- Morgan Stanley Real Estate Fund
- Columbia Endowment Fund
- California Public Employees
- Retirement System
- Hines
- Tishman Speyer
- Sam Zell's Equity International
- JP Morgan Partners
- Amaranth Advisors
- Housing Development Financial Corporation (HDFC)
- ICICI Venture
- Kotak Mahindra
Locations that are attracting FDI in infrastructure are as follows:
- Delhi and NCR
- Noida
- Gurgaon
- Mumbai
- Pune
- Kolkata
- Hyderabad
- Bangalore
- Chennai
The FDI investments are mainly made in areas like:
- Hotels
- Resorts
- Hospitals
- Educational institutions
- Housing
- Commercial premises
Last Updated on 05/08/2011
