BACHELOR’S IN BUSINESS ADMINISTRATION

INTERNATIONAL BUSINESS

A PROJECT REPORT ON
FLOW OF FDI IN CONSTRUCTION ACTIVITY OF INDIAN
ECONOMY

SUBMITTED BY

SAMRUDH SOMASE

BBA-IB SEMESTER V

ACADEMIC YEAR 2021-2022

UNDER THE GUIDANCE OF

PRIYANKA WANKHADE

SUBMITTED TO

SAVITRIBAI PHULE UNIVERSITY

IN PARTIAL FULFILLMENT OF

BACHELOR OF BUSINESS ADMINISTRATION-

INTERNATIONAL
BUSINESS(BBA-IB)

THROUGH

SURYADATTA COLLEGE OF MANAGEMENT, INFORMATION,

RESEARCH AND TECHNOLOGY, PUNE-41102

SAVITRIBAI PHULE PUNE UNIVERSITY
 ACKNOWLEDGMENT
Place: PUNE

Date: 30th November 2021

I would like to express my sincere thanks to Mrs. PRIYANKA WANKHADE, for

her valuable guidance and support in completing my project report on-

FLOW OF FDI IN CONSTRUCTION ACTIVITY OF INDIAN ECONOMY.

Without their support and suggestions, this project would not have been completed.

SAMRUDH SOMASE

TABLE OF CONTENTS

SR NO. TOPIC PAGE NO.

1.
INTRODUCTION 3

2.
BACKGROUND 8
INVESTMENT
OPPORTUNITIES IN
3. INDIA 10

4. SURVEYS 18
LIST OF INVESTMENTS
IN 2021 IN
5. CONSTRUCTION
SECTOR 24

6. CONCLUSION 33

7. BIBLIOGRAPHY 34
INTRODUCTION-
What Is a Foreign Direct Investment (FDI)?
A foreign direct investment (FDI) is a purchase of an
interest in a company by a company or an investor located
outside its borders.
Generally, the term is used to describe a business
decision to acquire a substantial stake in a foreign
business or to buy it outright in order to expand its
operations to a new region. It is not usually used to
describe a stock investment in a foreign company.
How Foreign Direct Investments (FDI) Work?
Foreign direct investment frequently goes beyond capital
investment. It may include the provision of management,
technology, and equipment as well.
A key feature of foreign direct investment is that it
establishes effective control of the foreign business or at
least substantial influence over its decision-making.
In 2020, foreign direct investment tanked globally due to
the COVID-19 pandemic, according to the United Nations
Conference on Trade and Development. The total $859
billion global investment compares with $1.5 trillion the
previous year.
And, China dislodged the U.S. in 2020 as the top draw for
total investment, attracting $163 billion compared to
investment in the U.S. of $134 billion.

Types of Foreign Direct Investment-

Foreign direct investments are commonly categorized as
horizontal, vertical, or conglomerate.
● With a horizontal direct investment, a company
establishes the same type of business operation in a
foreign country as it operates in its home country. A
U.S.-based cell phone provider buying a chain of
phone stores in China is an example.
 ● In a vertical investment, a business acquires a
complementary business in another country. For
example, a U.S. manufacturer might acquire an
interest in a foreign company that supplies it with the
raw materials it needs.
● In a conglomerate type of foreign direct investment, a
company invests in a foreign business that is
unrelated to its core business. Since the investing
company has no prior experience in the foreign
company's area of expertise, this often takes the form
of a joint venture.

Examples of Foreign Direct Investments

Foreign direct investments may involve mergers,
acquisitions, or partnerships in retail, services, logistics, or
manufacturing. They indicate a multinational strategy for
company growth.
They also can run into regulatory concerns. U.S. company
Nvidia has announced its acquisition of ARM, a U.K.-
based chip designer. In August 2020, the U.K.'s
competition watchdog had announced an investigation into
whether the $40 billion deal would reduce competition in
industries reliant on semiconductor chips.

What Is the Difference Between FDI and FPI?

Foreign portfolio investment (FPI) is the addition of international assets to the
portfolio of a company, an institutional investor such as a pension fund, or an
individual investor. It is a form of portfolio diversification, achieved by purchasing
the stocks or bonds of a foreign company.

Foreign direct investment (FDI) requires a substantial investment in, or the

outright acquisition of, a company based in another country.

FDI is generally a larger commitment, made to enhance the growth of a

company.

Both FPI and FDI are generally welcome, particularly in emerging nations.
Notably, FDI involves a greater responsibility to meet the regulations of the
country that hosts the company receiving the investment.

FDI in China and India-

China's economy has been fuelled by an influx of FDI targeting the nation's
5
high-tech manufacturing and services.
Meanwhile, relaxed FDI regulations in India now allow 100% foreign direct
6
investment in single-brand retail without government approval . The
regulatory decision reportedly facilitates Apple's desire to open a physical
store in the Indian market. Thus far, the firm's iPhones had only been
available through third-party physical and online retailers.

What Are the Advantages and Disadvantages of

Foreign Direct Investment (FDI)?
FDI can foster and maintain economic growth, both in the recipient country and in
the country making the investment.

Developing countries have encouraged FDI as a means of financing the

construction of new infrastructure and the creation of jobs for their local workers.

On the other hand, multinational companies benefit from FDI as a means of

expanding their footprints into international markets.

A disadvantage of FDI, however, is that it involves the regulation and oversight of

multiple governments, leading to a higher level of political risk.

BACKGROUND-
Construction Sector in India-
HISTORY-
The period from 1970 to mid 60's witnessed the government playing an active role
in the development of these services and most of the construction activities during
this period were carried out by state owned enterprises and supported by
government departments. In the first five year plan, construction of civil works was
allotted nearly 50 per cent of the total capital outlay.
The first professional consultancy company, National Industrial Development
Corporation (NIDC), was set up in the public sector in 1954. Subsequently, many
architectural, design engineering and construction companies were set up in the
public sector (Indian Railways Construction Limited (IRCON), National Buildings
Construction Corporation (NBCC), Rail India Transportation and Engineering
Services (RITES), Engineers India Limited (EIL), etc.) and private sector (M N
Dastur and Co., Hindustan Construction Company (HCC), Ansals, etc.).
In India Construction has accounted for around 40 per cent of the development
investment during the past 50 years. Around 16 per cent of the nation's working
population depends on construction for its livelihood. The Indian construction
industry employs over 30 million people and creates assets worth over ₹ 200
billion.
It contributes more than 5 per cent to the nation's GDP and 78 per cent to the gross
formation. Total capital expenditure of state and central govt. will be touching ₹
8,021 billion in 2011-12 from ₹ 1,436 billion (1999-2000).
The share of the Indian construction sector in total gross capital formation (GCF)
came down from 60 per cent in 1970–71 to 34 per cent in 1990–91. Thereafter, it
increased to 48 per cent in 1993-94 and stood at 44 per cent in 1999–2000. In the
21 st century, there has been an increase in the share of the construction sector in
GDP and capital formation.
GDP from Construction at factor cost (at current prices) increased to ₹ 1.745
billion (12.02% of the total GDP ) in 2004-05 from ₹ 1,162.38 billion (10.39% of
the total GDP) in 2000–01.
The main reason for this is the increasing emphasis on involving the private sector
infrastructure development through public-private partnerships and mechanisms
like build-operate-transport (BOT), private sector investment has not reached the
expected levels.
The Indian construction industry comprises 200 firms in the corporate sector. In
addition to these firms, there are about 120,000 class A contractors registered with
various government construction bodies. There are thousands of small contractors,
which compete for small jobs or work as sub-contractors of prime or other
contractors. Total sales of construction industry have reached ₹ 428854 million in
2004 05 from ₹ 214519 million in 2000–01, almost 20% of which is a large
contract for Benson & Hedges.

ABOUT CONSTRUCTION INDUSTRY INDIA-

The Construction Industry of India is an important indicator of development as it
creates investment opportunities across various related sectors. With a share of
around 8.2%, the construction industry has contributed an estimated ₹670,778
[1] [2]
crores (US$ 131 billion) to the national GDP at factor cost in 2011–12. The
industry is fragmented, with a handful of major companies involved in the
construction activities across all segments; medium-sized companies specializing
in niche activities; and small and medium contractors who work on the
subcontractor basis and carry out the work in the field. In 2011, there were slightly
[3]
over 500 construction equipment manufacturing companies in all of India. The
sector is labour-intensive and, including indirect jobs, provides employment to
more than 49.5 million people. The construction sector is visualized to play a
powerful role in economic growth, in addition to producing structures that add to
productivity and quality of life. Economic development is a term that economic
politicians and others have used frequently in the 20th century, modernization,
westernization and especially industrialisation are other terms people have used
while discussing economic development. Economic development has a direct
relationship with the environment. government undertaking to meet go abroad
economic objectives such as price stability, high employment and sustainable
growth, such efforts include financial and economic policies, regulations of
financial industry trade and tax policies.

Investment Opportunities in India’s

Construction Industry-
India’s construction industry offers several investment opportunities for foreign
companies given the country’s ambitious scope for infrastructure modernization,
developing ‘smart cities’, improving logistics and transportation routes, and
ensuring affordable housing for all.

Foreign investors also benefit from being able to invest in construction projects
without requiring government approval.

Market profile
India’s construction industry is rapidly expanding and includes real estate and
urban development projects. Real estate includes housing projects, building
offices, hotels, leisure parks etc. and urban development projects include highway
construction, building schools, transport and healthcare infrastructure, sewage
treatment, water supply, power generation etc.

Given the country’s ambition to modernize infrastructure, advance its cities with
‘smart’ development, and boost employment, India is expected to become the third
largest construction market in the world by 2025.

The construction industry covers a wide scope and contributes around 55 percent
to the steel industry, 15 percent to the paint industry, and 30 percent to the glass
industry.

To facilitate growth, India has relaxed foreign investment norms in this industry
and in 2020, the real estate sector alone received investment worth US$5 billion.

In terms of job creation, the Indian construction sector is responsible for employing
51 million people and earned the title of the most employed sector in 2017.

Foreign investment policy for India’s construction industry-

Under the current foreign direct investment (FDI) Policy, India allows 100 percent
FDI under the automatic route to:

● Complete urban infrastructure and development projects, such as residential

or commercial premises, roads, bridges, hotels, resorts, hospitals,

educational institutions, and recreational facilities
● Manage and conduct operations in completed townships and business

construction
 ● Begin real estate projects under Special Economic Zones (SEZs)

● Construct industrial parks

In the period between April 2000 to September 2020, India’s construction sector
received FDI worth US$17.22 billion for infrastructure activities and US$25.78
billion for construction development, as per government data.

Since the start of 2021, various key construction projects have been announced to
expand infrastructure and help achieve important business goals. They include:

● Announced on January 13 – a land parcel of 0.5 million sq. ft. to be added to

the Mindspace Business Park REIT, which is a prominent Real Estate

Investment Trust.
● Announced on January 22 – the Government of Gujarat will launch eight

new industrial estates in eight districts to boost manufacturing capacity of

micro, small, and medium-sized enterprises (MSMEs), including
manufacturing products like medical devices, auto ancillary goods,
engineering, and food products.
● Announced on February 2 – proposal of the Jal Jeevan Urban Mission to

provide water supply through functional taps to all households in 4,378

statutory towns to meet one of the key UN Sustainable Development Goals
(SDG Goal-6: Clean Water and Sanitation).
The government had previously announced a goal of creating affordable housing in
all urban areas by 2022. All of these would require massive injection of foreign
capital and flexible investment structures. The government estimates that it will
require FDI worth US$777 billion for infrastructure development.
Meanwhile, the COVID-19 pandemic put economic activity on hold for long
periods last year, disrupting growth patterns and resulting in mass job losses in key
sectors, including in construction, which sees heavy participation of migrant labor
across the country.

To revive prospects for a national economic rebound and ease investment

facilitation, the Indian government is reportedly proposing allowing limited
liability partnerships (LLPs) to invest in the construction of townships, hotels,
hospitals, and roads.

Currently, to invest in India’s construction sector, foreign investors are expected to

commit to a three-year lock-in period before exiting. Allowing the participation of
LLP firms could attract greater FDI.

India’s Union Budget 2021 announcements relating to the

construction industry
To successfully attract future foreign investments, Finance Minister Nirmala
Sitharaman in her Union Budget 2021 prioritized the following areas to showcase
the government’s interest in achieving India’s infrastructural goals:

● Allocation of INR 500 billion (US$6.85 billion) to the Ministry of Housing

and Urban Development.

● Allocation of INR 275 billion (US$3.76 billion) to the Pradhan Mantri Awas

Yojana, which aims to provide urban housing for all by 2022.

● Allocation of INR 137 billion (US$1.88 billion) to the Smart Cities Mission,

which aims to promote ‘smart cities’ that provide their citizens with core
 infrastructure, decent quality of life and a clean and sustainable
environment.
● Allocation of INR 23 billion (US$315 million) to the Swachh Bharat

Mission (Urban), which aims to embark on a campaign for a clean urban

India by improving sanitation and public health, removing the practice of
manual scavenging etc.
● Allocation of INR 99 billion (US$1.36 billion) to the Swachh Bharat

Mission (Rural), which aims to embark on a campaign for a clean rural India
by improving sanitation and public health, removing the practice of manual
scavenging etc.

Opportunities for foreign investors-

Foreign investors should note the following factors that will drive the investment
viability of India’s construction sector:

● Continuous increases in the demand for infrastructure and real estate.

● The real estate sector is expected to be valued at US$1 trillion by 2030 and

is expected to contribute approximately 13 percent to the country’s GDP by

2025.
● The country’s urban population is expected to be 50 percent of the total

population by 2025.
India hosts numerous projects that foreign investors can choose to invest in.
Popular examples include the development of residential and commercial
buildings, transport infrastructure, as well as maintaining efficient systems of water
supply and sewerage. More recently, the focus has turned to constructing green
buildings by using sustainable and environment-friendly materials and renewable-
based technologies as part of the smart city development program.
Foreign investment participation
Foreign companies currently invested in India, include:

● Alstom, France

● Aqualyng, Norway

● Ascendas, Singapore

● Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH,

Germany
● Hines, USA

● Hydro-Comp, South Africa

● The Trump Organization, USA

● Veolia, France

National Infrastructure Pipeline (NIP) – key growth driver-

The National Infrastructure Pipeline (NIP) is India’s biggest infrastructure project,
to be carried out for a period of five years after its public announcement in 2019.
The project aims to provide Indians with world-class infrastructure, improve the
quality of life, as well as attract foreign investments in capital projects.

NIP has aimed to create a ‘harmonized master list of infrastructures’ by

aggregating all the available information (provided by ministries, state
governments, and private sector) about infrastructure sub-sectors and record all
greenfield and brownfield projects whose costs exceed INR 1 billion (US$13.71
million). Investment projects under NIP cover transport, logistics, energy,
communication, water and sanitation, commercial infrastructure, and social
infrastructure. Sub-sectors within these sectors include roads and bridges, railways,
urban transport, airports and aviation infrastructure, ports, and shipyards.

Currently, under the NIP framework, there are 7,552 projects across 34 sub-
sectors, out of which 1,754 are in the process of development; in total, the projects
are estimated to be worth US$1,814 billion.

For foreign investors, the NIP has designed ‘Marquee Opportunities’, which refer
to specially curated strategic partnership opportunities that each investor can
closely investigate to decide which project fits them best. These projects are
available for comparison across different sectors and sub-sectors.

The following table describes the 42 marquee projects that are available across five
sectors.

Building a sustainable future-

The Construction industry in India consists of the Real estate as well as the Urban
development segment. The Real estate segment covers residential, office, retail,
hotels and leisure parks, among others. The Urban development segment broadly
consists of sub-segments such as Water supply, Sanitation, Urban transport,
Schools, and Healthcare. FDI in the construction development sector (townships,
housing, built up infrastructure and construction development projects) and
construction (infrastructure) activities stood at $26.08 bn and $24.72 bn,
respectively, between April 2000 and March 2021.

By 2025, Construction market in India is expected to emerge as the third largest

globally
By 2025, Construction output is expected to grow on average by 7.1% each year
Construction equipment industry revenue stood at $ 6.5 Bn in 2020
Cement production (weight: 5.37 per cent) increased by 21.8 per cent in July, 2021
over July, 2020.

100% FDI under automatic route is permitted in completed projects for operations
and management of townships, malls/shopping complexes, and business
constructions.

100% FDI is allowed under the automatic route for urban infrastructures such as
urban transport, water supply and sewerage and sewage treatment.

Industry Scenario-
The Construction Industry is expected to reach $1.4 Tn by 2025

● Construction Industry received the 2nd highest FDI in the period 2000-2020
● The Construction Industry works across 250 sub-sectors with linkages
across sectors. Broadly, it can be divided into real estate and infrastructure
construction.
● The Real Estate Industry in India is expected to reach $1 Tn by 2030 and
contributes to 13% of GDP
● Under NIP, India has an investment budget of $1.4 Tn on infrastructure -
24% on renewable energy, 19% on roads & highways, 16% on urban
infrastructure, and 13% on railways
● Under the Smart Cities Mission till June 2021, 2,734 projects have been
completed of the total 5,956 projects
 SURVEYS-
Foreign direct investment into India to stay
robust - Deloitte survey
International investors remain confident of India's short- and long-term growth
prospects and are readying plans to make additional and new investments in the
country, according to a survey of 1200 business leaders released by Deloitte.

India has attracted foreign direct investment at record levels even during the
COVID-19 pandemic with total FDI inflows amounting to $81.72 billion in
2020/21, 10% higher than the previous financial year.

The survey conducted at the peak of the second wave of the pandemic showed
44% of the respondents across the United States, UK, Japan, and Singapore said
they were planning additional or first-time investments in India.

Amongst new investors, nearly two-thirds are planning investments in India within
the next two years, it showed.
Utilities, particularly energy infrastructure, got 57% votes in terms of sectors that
will see new investments while financial services at 49% and healthcare at 48%
were other highly ranked sectors.

Deloitte said FDI is widely regarded as a foundation for accelerating a country's

economic growth.

"While foreign investment inflows into India have been consistently rising over the
past five years, they have not contributed proportionately to the country's capital
formation and GDP," the report said.

India's Prime Minister Narendra Modi in 2019 had said his country aimed to be a
$5 trillion economy by 2024. India's GDP is currently less than $3 trillion.

Several economists have said the pandemic has put at risk the country's $5 trillion
economy goal by 2024 and that it will take at least an additional two years to
achieve that target.

Deloitte in an analysis accompanying the report said India will need $8 trillion of
gross capital formation or new greenfield assets to become a $5 trillion economy
by 2026/27.

"Based on past trends, India will need at least $400 billion, cumulatively, over six
years, in FDI," it added.

While India is perceived as both politically and economically stable, it scored

lower on institutional stability i.e., regulatory clarity and efficient judicial redress
and mechanisms, the survey showed.

Inadequate infrastructure was another negative factor cited by existing and

potential investors.
"After the challenges of the past 18 months, the Deloitte survey is a positive
validation of the underlying strengths of the Indian economy, in particular its
appeal for foreign investors," said Punit Renjen, Deloitte Global CEO.

Towards attracting foreign investments in

Indian infrastructure-
The ambitious vision of the Indian government towards infrastructure
modernisation provides great scope for the construction industry to extend
numerous foreign investment opportunities. In fact, between years 2018-23, the
said industry is believed to grow at a rate of 6.4 per cent, whereas the sale of
construction-related equipment rose by 35 per cent in 2018 alone. By the year
2023, the industry is estimated to acquire a value of around $ 690 billion, with
residential construction continuing to hold the largest market share of 30.1 percent
of the construction industry’s value.
These figures project a highly promising future of investment in the industry
through development of smart cities, improvement of logistics and transit routes,
along with assurances of an affordable residential situation for all. The presence of
a flexible regulatory mechanism in the sector is another enable of inviting interest
from a greater number of foreign investors.
Recent Profile of the Construction Market
The construction sector in India is increasingly growing, including developments
in real estate and urban development. Construction of houses, hotels, leisure parks,
offices are some of the examples of real estate projects, while urban development
projects include highway construction, school construction, transportation and
healthcare infrastructure, treatment of waste materials, water supply, and power.
The construction industry also comprises a wide range of activities and accounts
for about 55 per cent of the steel industry, 15 percent of the paint business and 30
percent of the glass industry.
As a result of all of this, India is predicted to become the world's third largest
construction market by 2025. India has simplified foreign investment regulations in
this area to assist this expansion, and the real estate sector was itself estimated to
attract $ 5 billion in investment by 2020. In terms of creating jobs, the Indian
construction sector employs 51 million people, making it the most employed sector
in the country in the year 2017.

Existing Policy for Foreign Investment in Construction

India's current foreign direct investment (FDI) policy allows for 100 per cent FDI
in the following sectors:
• Residential and commercial properties, highways, bridges, hospitality,
hospitals, education and recreational facilities
• Managing and operating completed townships and commercial construction
• Beginning real estate development projects in Special Economic Zones (SEZs)
• Building industrial parks.
According to government data, India's construction sector received FDI worth $
17.22 billion for infrastructure activities and $ 25.78 billion for construction
projects from 2000 to 2020. Several major construction projects have also been
launched since the beginning of 2021 to enhance infrastructure and aid in the
achievement of critical economic objectives, such as:
● A 0.5 million square foot land piece to be incorporated into the Mindspace
Business Park REIT, a well-known Real Estate Investment Trust.
● Gujarat government plans to open new industrial parks in 8 districts to help
micro, small, and medium-sized businesses (MSMEs) expand their
manufacturing capacity, including medical equipment, car auxiliary goods,
food products and engineering.
● To accomplish one of the core UN Sustainable Development Goals (Clean
Water and Sanitation), the Jal Jeevan Urban Mission has proposed providing
water to all families in 4,378 statutory towns through operable taps.
● The government had earlier stated that by 2022, it hoped to have affordable
housing in all urban areas. All of this would necessitate a large infusion of
foreign funds and the creation of flexible investment frameworks. The
 government forecasts that infrastructure development will require FDI worth
$ 777 billion. Moreover, to mediate the effects of COVID-19 pandemic and
improve investor facilitation, the Indian government is considering
permitting limited liability partnerships (LLPs) to finance townships, hotels,
hospitals and highways. Foreign investors are currently required to agree to
a three-year lock-in period before departing India's building business.
Encouraging LLP firms to participate could attract more FDI.

Construction-related Allocations under Union Budget 2021

In order to successfully attract potential foreign investments, the finance minister
highlighted the following sectors in her Union Budget 2021 to demonstrate the
government's commitment to attaining India's infrastructure goals:
• The Ministry of Housing and Urban Development would get INR 500 billion ($
6.85 billion).
• The Pradhan Mantri Awas Yojana, which promises to provide urban homes for
all by 2022, would get INR 275 billion ($ 3.76 billion).
• The Smart Cities Mission, which aims to endorse smart cities that offer their
residents with fundamental infrastructure, a reasonable quality of life, and a
sustainable and clean environment, has been allocated INR 137 billion ($ 1.88
billion).
• The Swachh Bharat Mission (Urban) has been given a budget of INR 23 billion
($ 315 million), with the goal of launching a campaign for a clean urban India by
enhancing sanitation and public health, eliminating manual scavenging, and so on.
• A budget of INR 99 billion ($ 1.36 billion) has been set aside for the Swachh
Bharat Mission (Rural), which intends to launch a campaign for a clean rural India
through improving sanitation and public health, eliminating manual scavenging,
and so on.
The Opportunities Ahead
There is a consistent increase in the infrastructure and real estate demand in India.
The value of the industry is expected to be at $ 1 trillion by 2030, and is believed
to constitute 13 per cent of the total Gross Domestic Product (GDP) by 2025. In
addition, the projected growth of urban population to half of the entire population
by the year 2025 is another indication of the impending expansion of scope for the
sector.
At the moment, since its initial release in 2019, the National Infrastructure Pipeline
(NIP) has been India's largest infrastructure project, with a five-year construction
duration. The project intends to deliver world-class infrastructure to Indians,
improve their quality of life, and attract foreign capital investment in capital
projects. By collating all available information (provided by departments, state
governments, and the corporate sector) about infrastructure sub-sectors and
recording all greenfield and brownfield projects the costs of which exceed INR 1
billion ($ 13.71 million), NIP hopes to create a "harmonised master list of
infrastructures". Along with this, or foreign companies, the NIP has created
‘Marquee Opportunities’, outlining specially designed strategic partnership
openings that every investor can thoroughly investigate to resolve which project
fits their needs best, available for comparison across disparate sectors as well as
sub-sectors.
Most recently, on October 13, 2021, the Prime Minister also launched the 'Gati
Shakti Master Plan' to curate a nurturing environment for infrastructural
development by establishing ease of coordination between various government
ministries and departments, fast-tracking planning while bringing down costs. The
master plan includes:

Finally, the geographic information system (GIS)-supported digital platform under

the Gati Shakti initiative will enable various ministries and other stakeholders to
access required information with respect to the landscape, satellite images,
physical features and other existing facilities. This will benefit investors by saving
time and funds on approvals, thus, facilitating a more swift implementation.
LIST OF INVESTMENTS(IN 2021)-
● Nov 12, 2021
Egis Group, a French multinational company operating in the construction,
engineering and mobility services sectors, is likely to invest EUR 50 million
in India over the next five years, after making an investment of EUR 75
million over the previous two decades.
● Nov 12, 2021
INDIS, a realty firm, has raised INR 1,000 crore from Brookfield Asset
Management for development of five residential projects in South India.
● Nov 11, 2021
Real estate developer Embassy Group is planning to invest around Rs 600
crore to develop 5.5 lakh sq. ft of office space in Bengaluru, Karnataka.
● Oct 29, 2021
Dalmia Cement will set-up a 2 mn tonne plant at Jharkhand's Bokaro at an
estimated cost of INR 577 crore, Jharkhand government
● Oct 21, 2021
Flexible workspace provider IndiQube has set up a coworking centre
IndiQube Orchid spread over 1.5 lakh sq. ft at Yerwada locality in Pune,
Maharashtra.
● Oct 18, 2021
GR Infra's InvIT likely next year, eyes $2 billion enterprise value.
● Oct 18, 2021
Masters group to invest INR 250 crore in developing one million sq ft in
Noida.
● Sep 22, 2021
Larsen & Toubro (L&T) on Tuesday said one of its wholly-owned arm has
bagged two orders in the construction services segment — one each from
GAIL India and Air Products Middle East Industrial Gases LLC.
 ● Sep 20, 2021
Yotta Infrastructure of the Hiranandani Group will invest INR 900 crore
over three-four years to set up 100 Edge data centers.
● Sep 13, 2021
The Minister of Housing and Urban Affairs said that an Atmanirbhar India
will only be possible if our cities become productive. The Minister while
addressing the inaugural session of ‘Connect Karo 2021 - Towards
Equitable, Sustainable Indian Cities’ said this will be the key to achieving
the nation’s development objectives.
● Aug 26, 2021
Rosneft-backed Nayara Energy has tied up funding of INR 4,000 crore from
a State Bank of India-led lenders’ consortium for its first petrochemicals
project.

· Aug 25, 2021

Cabinet approves FDI proposal of M/s Anchorage Infrastructure Investment
Holding Ltd, proposing an investment of INR 15000 crore in India.
● Aug 16, 2021
Asian Development Bank has embarked on a green housing initiative in
India aiming to reduce carbon emissions and conserve water and energy.
The multilateral development body has tied up with low cost housing
financier IIFL Home Finance towards this end. ADB is also planning to
engage other institutional stakeholders including the Indian government,
which has initiated a massive drive towards housing for all.

· Aug 11, 2021

2,781 projects worth ₹ 48,150 crore have been completed under the Smart Cities
Mission.
● Aug 05, 2021
11 Industrial Corridors with 32 Projects to be developed in 4 phases in the
country as part of National Industrial Corridor Programme (NICP).
● Aug 05, 2021
India and the World Bank sign a $250 million project to make existing dams
safe and resilient.
Jul 29, 2021
Shree Cement of BG-HM Bangur Group is looking all set to commence work on
its proposed project in West Bengal by August 2021.The Group is planning to
invest more than INR 600 crore in the cement grinding unit which might pave the
way for employing 150 people directly and over 1,000 indirectly. This will mark
its first production facility in the state where the group has its headquarters.
● Jul 27, 2021
IFC, HDFC ink $250 million partnership to promote affordable green
housing finance in India.
● Jul 15, 2021
Brookfield Infra, Digital Realty ink JV to develop, operate data centers in
India
● Jul 06, 2021
NABARD sanctioned INR 2891.15 lakh under Rural Infrastructure
Development Fund (RIDF) to the Government of Goa for ‘Construction of
Phase II Building of Goa Dental College and Hospital, Bambolim.
● Jun 25, 2021
Inspire Co-Spaces, a flexible office space provider, has entered a long-term
agreement to lease 15,000 sq ft space in commercial real estate project
Maloo 01 in Indore, Madhya Pradesh, to start a coworking centre.
● Jun 24, 2021
India Infrastructure Finance Company Ltd (IIFCL) plans to invest INR 4,000
crore in Infrastructure Investment Trusts (InvITs) in the current fiscal,
subject to RBI''s approval.
● Jun 24, 2021
IndoSpace, Everstone Group's industrial and logistics real estate
development platform, has launched two parks, Vallam II and Oragadam III
in Tamil Nadu, adding 118 acres to its portfolio.
● Jun 07, 2021
Avigna Group To Invest INR 800 Cr In Fy22 To Build Warehousing,
Industrial Parks In Tn, Karnataka.
● Jun 04, 2021
UK-based SRAM & MRAM Group will invest $100 mn in real estate
projects in India in partnership with Area CAS Developers and
Infrastructure Private Limited (Area Group), and Gupta Builders and
Promoters Private Limited (GBP Group) to develop group housing,
commercial projects, multiplex, townships and hotels in Delhi NCR,
Chandigarh, Panchkula, Mohali, New Chandigarh.
● May 31, 2021
The size of the real estate sector is projected to cross $1 tn by 2030. In 2019-
20, the real estate sector contributed nearly 7% to India’s GDP ($200 bn)
and projections are that by 2030 this number is going to cross $1 tn.
● May 24, 2021
Four expressway projects 340 km Purvanchal Expressway, 296 km
Bundelkhand Expressway, 91 km Gorakhpur Link Expressway, and 628 km
Ganga Expressway with an estimated outlay of ~80,000 cr are in different
stages of development in the state.
● Apr 29, 2021
Amid a raging second wave of COVID-19, the Odisha government approved
investment proposals worth over INR 2,570 cr in metal, cement, chemical,
plastic, food processing and manufacturing sectors, which would generate
employment opportunities for 2,755 people.
● Apr 29, 2021
Indian real estate institutional investments up 21% in Q1 at $922 million
● Apr 23, 2021
The buildings and factories business of L&T Construction has secured a
significant contract (worth INR 2,500 cr) from Oilfields Supply Company
Saudi owned by the Dubai based Oilfields Supply Center Ltd. to design and
build one of the World’s largest oil and gas supply bases at King Salman
Energy Park, Dammam, Kingdom of Saudi Arabia
● Apr 15, 2021
The Ministry of Housing and Urban Affairs has launched the Eatsmart Cities
Challenge and Transport 4 All Challenge. This aims to develop a plan that
supports a healthy, safe, and sustainable food environment, and develop
digital solutions to make public transport safe, affordable, comfortable, and
reliable.
● Apr 01, 2021
Sunteck Realty, a Mumbai-based property developer, has secured a marquee
around a seven acre land parcel at Borivali (west), Mumbai. The company
will develop a luxury residential project in the upmarket residential locality.
JLL India was the exclusive transaction partner for the JV.
 ● Mar 30, 2021
Ascendas India Trust (a-iTrust) will acquire 1.65 million sq ft area at an IT
park in Bengaluru, Karnataka, for an estimated deal value of INR 1,441
crore.
● Mar 26, 2021
The government is likely to launch the second phase of the industrial park
rating system (IPRS) in April with an aim to enable informed decision
making for various stakeholders like investors and promote ease of doing
business.

● Mar 24, 2021

Vasavi Group has unveiled three mega residential projects -- Vasavi Urban,
Vasavi Metropolis and Vasavi Greenleaf. The projects cover three corridors
of the city of Hyderabad, Telangana. Vasavi Urban offers premium two-
BHK homes with world-class amenities at a budget-friendly price.
● Mar 19, 2021
Asset management firm MPowered, which recently raised $21 million in a
pre-series A round from US-based investors, has acquired 1,00,000 sq ft of
commercial space in Gurugram, Haryana.
● Mar 18, 2021
Shapoorji Pallonji Real Estate will make an investment of INR 300 crore to
construct around 440 luxury apartments in Bengaluru, Karnataka.
● Mar 12, 2021
IndoSpace, the real estate arm of Everstone Group, has acquired a 55 acre
plot at Farukhnagar in Haryana, which the company will jointly develop
with Reliance Industries’ wholly-owned subsidiary Model Economic
Township (METL).
● Mar 12, 2021
The government of Gujarat in a major boost to the GIFT city has issued a
resolution to allow those not working within the country's first operational
smart city to also reside in the GIFT city.
● Mar 05, 2021
NBCC Signs Mou With Rinl To Redevelop, Monetise 22.19 Acre Land In
Visakhapatnam.
● Mar 05, 2021
The government of Andhra Pradesh has decided to develop suburban areas
with required civic infrastructure. The municipal administration department
has readied a blueprint to make suburban areas into smart cities.
Interestingly, the state government has decided to offer house sites to the
middle and upper-middle income groups at reasonable prices in the layouts
to be readied by the municipal administration department.
● Mar 04, 2021
Godrej Interio has secured contracts for the Bengaluru, Kochi and Mumbai
Metro projects worth around INR 250 crore. The scope of work includes
carrying out civil finishes, cladding, block works, facade glazing, metal
ceiling, aluminium louvers, structural steel works, plumbing, railing,
horticulture in these Metro projects.
● Mar 04, 2021
The Gujarat government is planning to establish vertical industrial estates
with multiple floors to accommodate small factories considering the scarcity
of land in future.
● Mar 02, 2021
Bengaluru-based real estate company Embassy Group and Ivanhoe
Cambridge, a subsidiary of Canada's institutional fund managers CDPQ,
have partnered to launch a $500 mn investment fund focused on office
business parks. Initially, the cities of Bengaluru and Chennai will be
covered.
● Feb 25, 2021
Max Asset Services (MAS), a subsidiary of Max Group’s listed entity Max
Ventures & Industries (MaxVIL), has announced its entry into the managed
office spaces business with the launch of WorkWell Suites at the newly
developed office complex Max House, Okhla.
● Feb 19, 2021
The Executive Centre (TEC) opened two new centres in Pune, Maharashtra
and Bengaluru, Karnataka and now has over one million sq ft space. With
this INR 40 crore investment in the two new centres, TEC now has 33
centres.
● Feb 16, 2021
Japanese Ambassador to India Satoshi Suzuki said on Monday that his
country is looking forward to assisting in projects related to enhancing skills
and infrastructure in Assam.
● Feb 15, 2021
Silverglades Group, a real estate developer, will make an investment of
around INR 500 crore to build an ultra-luxury mix-use residential project
Hightown in Gurugram, Haryana.
● Feb 12, 2021
Amendments for enabling FPIs to subscribe to listed debt securities of
REITs and InvITs.
● Jan 29, 2021
Shapoorji Pallonji Real Estate to infuse INR 4,000 cr in Pune project.
● Jan 27, 2021
The Dubai-based Brixton Group has proposed to set up India’s first
industrial smart city in Kochi, Kerala, at an investment of INR 1,200 crore.
● Jan 27, 2021
The Gujarat government has announced eight new industrial estates to be set
up in eight districts of the state, in a move to augment capabilities for
manufacturers of a variety of products including ceramics, clocks, toys,
medical devices, auto ancillary, engineering products and food products.
● Jan 25, 2021
GPT Infraprojects secures order worth INR 64.10 cr. The order is for
construction of superstructure of bridges over river Pagla at chainage and
viaduct near Pherima Station and other related works between the proposed
stations Sukhovi and Pherima in connection with Dimapur-Kohima New
Line Projects in Nagaland.
● Jan 22, 2021
Migsun, a real estate developer, has entered into a joint development
agreement with Royal Golf Link City Projects to develop nine acre
residential and retail space in Greater Noida, Uttar Pradesh, with an
investment of INR 250 crore.
● Jan 21, 2021
Indian real estate attracted $5 billion institutional investments in 2020
● Jan 19, 2021
 Ocean Infraheights to infuse INR 450 cr in commercial, retail hub in Greater
Noida
● Jan 14, 2021
Malaysia-headquartered IQI, a real estate agency, launched operations in
India and plans to invest INR 100 crore to acquire commercial and retail
assets in the country.
● Jan 13, 2021
K Raheja Corp has entered into a joint development agreement for 0.5
million sq ft land parcel in Pune to be added to K Raheja Corp-Blackstone
Group-backed Mindspace Business Parks REIT, India’s second listed Real
Estate Investment Trust
● Jan 08, 2021
Oaktree Capital Management, a global alternative investment management
firm, has invested INR 425 crore in 25 South, a prime sea-facing luxury
residential development spread over 5.3 acres in Prabhadevi, Mumbai.
● Jan 07, 2021
National Infrastructure Pipeline expanded to 465 more projects
● Jan 01, 2021
The Centre has shortlisted 50 key infrastructure projects worth over INR two
lakh crore for regular monitoring by the Prime Minister's Office (PMO) to
ensure their early completion.

CONCLUSION-

FDI in the construction industry in India, thus on one

hand helps in increasing the output through usage of advanced
technology and management techniques and on other it is a
threat to local companies in the country. Government should
take steps in the direction of integrating foreign investors with
local businesses. This will help in the direction of integrating
foreign investors with local businesses. This will help in overall
economic development as well as preservation of the country's
heritage. MNC’s should be allowed to set up in such a manner
that they help increase the standard of living of our country
instead of sole profit making.

BIBLIOGRAPHY-

·
https://www.india-briefing.com/news/investme
nt-opportunities-india-construction-industry-
market-growth-drivers-2021-budget-
21692.html/
·
https://www.investindia.gov.in/sector/constructi
on
· https://www.reuters.com/world/india/foreign-
direct-investment-into-india-stay-robust-
deloitte-survey-2021-09-14/
· https://neerajbhagat.com/blog/index.php/fdi-in-
construction-development-sector-in-india/
· https://www.investindia.gov.in/team-india-
blogs/building-bridges-towards-attracting-
foreign-investments-indian-infrastructure