Search
 

Ernst & Young's Rahul Rai

Local financial institutions have started real estate funds--$200 million--to make investments in India.

By Melissa Kress | Updated on June 10, 2005

When people think of India, technology and off-shoring come to mind; but there is much more going on in the country these days. According to a report by Ernst & Young, the government has been easing regulations previously used to restrict foreign direct investment in India. In March, the government revealed a liberalized set of guidelines for FDI in real estate, essentially opening up all property sectors. At first, this new policy is expected to spur joint-venture developments between Indian and foreign developers; however, solo foreign projects should begin to pop up as outside developers gain knowledge of the Indian market, the report adds. The FDI figure is projected to hit US $15 billion this year–triple the amount of 2004–and India has surpassed Mexico as the third most preferred country for foreign investment. Rahul Rai, associate director of transaction and advisory services at Ernst & Young India, spoke to GlobeSt.com about where the real estate market has been the past 10 years and where it is headed.

GlobeSt.com: When did the IT and offshoring boom start?

Rai: The IT boom itself started in the ’90s and one of the major drivers was the Y2K problem. A lot of Indian companies specialized on finding solutions. Post 2000, that manpower became free and was competent enough to go into other areas of IT. Offshoring is also a ’90s phenomenon. It has gathered momentum since 2000 but there where a lot of developments before that, like GE setting up its center in India.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.