Global Trade Alert

On 3 December 2014, India liberalized the policy for FDI in the Construction sector. The new policy amendments have lowered the threshold for capital investments and rationalized it at USD 5 million, reduced the minimum built-up area from 50,000 sq. mts. to 20,000 sq. mts and reduced the minimum land area requirement completely for development of serviced housing plots.
 
Earlier, investors were not allowed to repatriate investments until 3 years from completion of minimum capitalization. This has been changed to allow exit on completion of project or development of trunk infrastructure (i.e. roads, water supply, drainage, street lighting and sewage).
 
Finally, the requirement to have completed 50% of the development within 5 years from the reception of statutory clearances for these projects has been removed.