One of the most important pillars of the Indian economy is the real estate sector. It not only generates employment directly but various ancillary industries like steel, cement, paint, bricks, consumer durables are dependent directly on the growth of the real estate industry. There is a huge shortage of homes in India which is likely to go up many folds in the next few years. To live up to the promise of 'Home for all' by 2022 and to give a fillip to the construction sector, the Government has decided to encourage investment into the real estate sector.
In the liberalised policy announced by the Government, the requirement for minimum built-up area has been reduced to 20,000 sq. meters from the earlier requirement of 50,000 sq. meters. The minimum requirement for capital investment has been reduced to 5 million USD from 10 million USD. It has also been suggested that projects that commit at least 30% of the total project cost to low-cost affordable housing, will be completely exempted from the capital and built-up area requirements mentioned above.