Narendra Modi’s proposed plan to allocate nearly Rs 30 lakh crore to transport sector over the next five years , together with investment push for the infrastructure sector, will provide a big impetus to the real estate sector.
As per the blueprint prepared by the Modi government, the mega transport plan includes capital spend on roads , highways and rail connectivity. There will be much focus on ambitious Sagarmala project to boost connectivity.
Another highlight is investment of Rs 7 lakh crore for upgrading the urban infrastructure. Apart from budgetary allocation, support through viability gap funding and investment by public sector companies is also included in the capex estimates.
Says Pradeep Aggarwal, Chairman, Assocham National Council on Real Estate, Housing and Urban Development and Founder & Chairman, Signature Global, ” Physical infrastructure in the form of mobility like roads and rail is a key to the rapid growth of real estate sector. The government’s plan to boost spending on mobility will give a much needed push to housing, particularly affordable housing”.