Abstract—In India after agriculture, the real estate sector is
the second largest industry and it is asserted to be the most
promising sector even today. The real estate market in India
mostly continues to remain unorganized, fairly fragmented,
mostly characterized by small players with local presence.
Indian real estate has huge potential demand in almost every
sector especially commercial, residential, retail, and industrial,
hospitality, healthcare etc. More emphasis was laid on FDIs in
real estate only from 2005. Secondary data has been used for the
study. The trends of the FDI’s in real estate sector are
compared with the other sectors in India. The FDI inflow data
from 2002-2010 has been considered. This data is used to assess
the impact of FDI’s in India and economic growth achieved
through FDI flows. This paper aims at analyzing the flow of
FDIs in real estate sector in India and the impact of the global
recession on the FDI flows along with the RBI initiations for
attracting more FDIs into the real estate sector. It is observed
that FDI inflows into several sectors into India are devoid of the
declining GDP growth rate which includes the Housing sector
also. The impact of recession is averted by the Government
intervention, and certain efforts in Housing have in fact helped
the economy grow and vice versa.
Index Terms—Foreign Direct Investment, economic growth,
Real estate sector, global recession on FDI’s.
T.Mamata, Assistant Professor, Padala Rami Reddi Colleges,
Manchirevula, Narsingi, Hyderabad/ Research scholar (JNTU) under the
guidance of (Dr.D.Pradeep Kumar, Professor &Head, Department of
Management studies, Madanapalle Institute of Technology and Science,
Madanapalle, Andhra Pradesh).
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Cite:T.Mamata, "Impact of Global Financial Crisis on FDI Flows in India – A Special Reference to Housing sector," International Journal of Trade, Economics and Finance vol.2, no.1, pp. 32-38, 2011.