Travel India

- Opportunities
- Applicable Laws/Regulatory Policies.
- Tax Benefits/ Incentives
- Current Projections in the Budget.

I. INTRODUCTION.

Due to LPG policy particularly liberalized Foreign Direct Investments (FDI) regime the Indiaâ??s explosive economic progress has captured the worldâ??s attention and its property market has indeed emerged as one of the most appealing investment destinations for both domestic and foreign investors.

Indian Real estate is on the high growth path and the boom is mainly due to mall culture, multiplexes, hypermarkets and retail sector are growing in India and retail brands from all over the world are showing their keen interest to even setup their base in India especially MNCs apart from retail outlets coupled with rising demand for commercial and residential boosting the industry. It is expanding its wings even in remote towns. Leave aside metro cities, smaller towns have attracted construction activity from big developers. Shopping malls, skyscrapers and new infrastructures are shaping new India.

II OPPORTUNITIES

Indian real estate has huge potential demand in almost every sector especially commercial, residential, hospitality, healthcare, retail and industrial etc. This is growing at a dizzying pace of almost 30 percent each year. The bulk of construction activity – 80 percent is dedicated to housing, while the rest is commercial, including offices, malls, hotels and hospitals.
The Real Estate market is projected to grow to US$60 billion by 2010 at a CAGR of 40%
Several factors are expected to contribute to the rapid growth in Real Estate

Large demand-supply gap in affordable housing, with demand being fuelled by tax incentives and a growing middle class with higher savings. Increasing demand for commercial and office space especially from the rapidly growing Retail, IT/ ITeS and Hospitality sectors etc.

Investment opportunities exist in almost every segment of the business as per the estimates of Investment commission of India particularly in the following sector.

Over 20 million new housing units will require in next 4 years.

Office space for IT/ITeS: Five-fold increase in office space requirement over the next 3 years

Commercial space for organized retailing: 200 million sq. ft. by 2010.

Hotels & Hospitality: Over 40,000 new rooms in the next 5 years

Investment opportunity of over US$75 billion in will require in the next four years.

Working Group on Urban Housing pertaining to the 11th Plan made assumptions on unit cost of construction of houses in million plus cities and other urban areas for estimating the investment required for overcoming the housing shortage. The total estimated investment for meeting the housing requirement upto 2012 was estimated to be of the order of Rs.3,61,318.10 crores consisting of Rs.1,47,195 crores for mitigating housing shortage at the beginning of 11th Plan and Rs.2,14,123.10 crores for new additions to be made during the 11th Plan period (this includes construction of pucca houses & upgradation of semi-pucca and kutcha housing units.

Apart, India in the next two years period is estimated to require investments worth US$60 billion by 2010. This again has opened up opportunities for foreign investments in the realty sector. FDI liberalization in year 2005 has thrown open the lucrative parts of the Indian realty market to global investors.

Foreign Direct Investments in the real estate sector in India would also contribute towards making the sector more organized. Besides increasing professionalism in the sector, it would bring in advanced technology and help in the creation of healthy and competitive market environment for both domestic and foreign investors.

Real Estate companies have been successfully tapping the countryâ??s booming capital markets for funds.

Commercial office space requirement is led by the burgeoning outsourcing and Information Technology Industry. The leaders of the IT/ITES world have set up or are setting up their centers in India. Estimated demand from IT/ITES sector alone is expected to be 150mn sq.ft. of space across the major cities by 2010.

In residential sector there is housing shortage of 19.4 million units out of which 6.7 million are in urban India. High demand growth has led to prices doubling over 3 years in many cities.

The increase in purchasing power and exposure to organized retail formats has redefined the consumption pattern. As a result the country has experienced mushrooming of retail projects across the cities.

Growth is expected in the all following sectors and Foreign Direct Investment is encouraged and permitted these sectors subjected to certain conditions.

â?¢ Hotel Development
â?¢ Tourism

If you want to read article go to second part of this – Indian real estate investment policy India â?? Part II.

“Namaskar” … a greeting and nice magic welcome you upon arrival in the country, acknowledged with sincerity, hands clasped and head bowed. A journey to India is still today a true adventure and full of sentiments, a source of unforgettable memories that will remain eternally engraved in your memory. Hindi – This beautiful language is a reflection of a great country, and also distinguished depaysant one.

With a tour to India to learn Mughal and Hindu cultures that cover northern India a cloak of gold and brocade. India is the country of maharajas, palaces, violent colors and emotions. Discover Holidays in India on the incredible heritage that sprinkles these areas and let you to be mesmerized by the epic legends of India.

A stay in India will reveal a world of contrasts: market driven, captivating scenes of everyday life, temples and fairy-tale palaces where the history of Hinduism and Buddhism is enshrined forever in stone, diversity of a people each is to present the rites of his religion. During your Holidays in India you will see the palace of dreams and enchanted gardens, spectacular temples and houses decorated with frescoes, women in saris and skillful craftsmen, colorful markets and caravans of the desert, with music and eccentric traditions, dances and new technologies, India is gradually changing but remains just as enchanting!

During your tour to India, the “land of kings” has a thousand and one beauties over this glorious stay! The citadels of the palaces, the camel safari in the jeep, live dream in full.

In the north you will find the most beautiful monuments of the country: the magnificent Taj Mahal in Agra, the city of Fatehpur Sikri, Khajuraho temples and erotic sculptures and those of Bhubaneswar in Orissa. You can relax in the beach resorts of the west side, in Goa, while enjoying to visit religious sites like the caves of Ellora, World Heritage of Unesco. Mumbai is the capital of Indian cinema but also the financial and commercial pillar of the country. Victorian monuments located on the seafront are tourist attractions. Rajasthan is a colorful, traditional dress of the old castles Rajasthani powerful Rajputs of Jaipur as the pink or blue Jodhpur. Many travelers back traumatized by the vast poverty of the country but most returned to find the unique ambiance of India, filled with spirituality on spectacular landscapes.

Elegance and hospitality such cannot go overlooked or leave you indifferent. Holidays in India can point to other similar holidays: It is a story of love and passion … Visit after visit, you cannot forget India … more the ambiguity and beauty of India remain unexplored. India has everything you envision and more to discover.

Indian came into being with the enactment of the Air Corporations Act, 1953. It was renamed Indian on December 7, 2005 from its earlier name Indian Airlines. Indian Airlines started its operations from 1st August, 1953 with a fleet of 99 aircraft and was the outcome of the merger of seven former independent airlines namely Deccan Airways, Airways-India, Bharat Airways, Himalayan Aviation, Kalinga Air Lines, Indian National Airways and Air Services of India. The year 1964 saw the Indian Airlines moving into the jet era with the introduction of Caravelle aircraft into its fleet followed by Boeing 737-200s in the early 70s. Along with its wholly owned subsidiary Alliance Air, it flies a fleet of 70 aircraft including Airbus A300s, Airbus A320s, Airbus A319s, Boeing 737s, Dornier Do-228, ATR-4, Airbus A319, A320s & A321s. Alongwith Indian cities, it flies to many foreign destinations which include Kuwait, Singapore, Oman, UAE, Qatar, Bahrain, Thailand, Singapore, Malaysia, Myanmar besides Pakistan, Afghanistan, Nepal, Bangladesh, Sri Lanka and Maldives

Indian Airlines’ free run over the Indian skies ended with the entry of private carriers after the liberalization of the Indian economy in the early 1990’s when many private airlines like Jet Airways, Air Sahara, East-West Airlines and ModiLuft entered the fray. The entry of low-cost airlines like Air Deccan, Kingfisher Airlines and SpiceJet has revolutionized the Indian aviation scenario.

Indian has been a pioneer in the aviation scene in India. It was the first airline in India to introduce the wide-bodied A300 aircraft on the domestic network, the fly-by-wire A320, walk in flights and easy fares. It flies to 76 destinations – 58 within India and 18 abroad. It has a total employee strength of around 19300 employees along with Alliance Air and carries over 7.5 million passengers annually, along with Alliance Air