New FDI norms will help revive construction and infrastructure
ECONOMY & POLICY

New FDI norms will help revive construction and infrastructure

Apart from being a critical driver of economic growth, FDI has been a major financial resource for the economic development of India. The Indian government’s favourable policy regime and robust business environment have ensured that foreign capital keeps flowing into the country. The construction development and infrastructure activities sector received FDI inflows amounting to $25.78 billion and $17.22 billion, respectively, between April 2000 and September 2020.

As India eases norms on foreign investment, legal experts Daizy Chawla and Sunaina Jhingan examine the impact on the construction and infrastructure sector. In this guest article, Chawla says that with the easing out of FDI norms in the construction and infrastructure sector, there is increased impetus for further development of infrastructure, attracting more domestic and international players. She predicts that the new norms will pave the way for further recovery of the construction and infrastructure sectors.

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