Infrastructure development is crucial for boosting economic growth in India. Despite facing challenges like climate change and geopolitical tensions, the country aims to achieve a GDP growth of 7.3% in FY24 and double its GDP by 2030. Strategic infrastructure projects will be key to reaching this goal, as they promote connected infrastructure, integrating physical, digital, and connectivity aspects to support other industries.
Connected infrastructure is vital for sectors like manufacturing, as it ensures access to skilled labor and facilitates economic activity. As a result, we’re seeing rapid development and improved connectivity in smaller cities and rural areas. Initiatives like the Bharatmala highway network and the Delhi Mumbai Industrial Corridor are transforming the infrastructure landscape, promoting urban expansion and economic growth nationwide.
The real estate sector, valued at $477 billion and contributing 7.3% to GDP, plays a significant role in India’s growth story. With over 250 associated industries and 18% of total employment, it’s a major driver of economic activity. Positive trends like increasing foreign investment, growing interest in commercial real estate, and the rise of mid-segment and luxury properties indicate strong growth potential.
In FY23, the residential property market saw remarkable growth, with home sales reaching 3.47 lakh crore, a 48% increase year-on-year. This suggests that the real estate sector could contribute 15% to GDP by 2030, surpassing $1 trillion in value. To further accelerate growth, measures such as developing infrastructure, tax reductions, and incentives for homebuyers are needed.
Additionally, the real estate sector must prioritize digitalization for transparency, invest in research and development for cost-effective solutions, and adopt eco-friendly practices for sustainability. By implementing these measures, the sector can play a significant role in infrastructure development and help achieve India’s goal of a $7 trillion economy by 2030.
By Pradeep Aggarwal, Chairman of ASSOCHAM-National Council on Real Estate, Housing and Urban Development
Also read : Guide: Investing in Commercial Real Estate Without Actually Buying It