India Eases FDI Rules in Construction Sector

Paving the way for a construction boom in the country, Indian government eased foreign direct investment rules for the construction sector.

The move, also aimed to attract more money into the country to build new hotels, housing and townships, is expected to bring in more projects in to the country, government said in a statement.

Under the new rules, foreign investment is now allowed in projects with a minimum built area of 20,000 square metres, down from a previous 50,000 threshold.

The minimum capital investment by foreign companies has been halved to $5 million, the statement said.

Previously, India allowed 100 percent foreign direct investment in real estate development but with strict conditions, including a lock-in period of three years during which the investment cannot be repatriated.