Laying the Foundation of Success - The 100 Days expectation on India's plan for Infrastructure, Real estate and Economic Renaissance.

 What to expect in the first 100-Days of the Newly Elected Indian Government

In a historic political victory, Prime Minister Narendra Modi was sworn in for his third consecutive term on June 9, 2024. Alongside him, 71 other Union ministers took the oath, signaling the beginning of another chapter in India's governance. This election, marked by an unprecedented voter turnout and a decisive mandate, reaffirms Modi's vision and leadership for the nation. With a robust team and a clear mandate, the newly elected government has laid out an ambitious 100-day agenda aimed at propelling India towards a path of rapid development and socio-economic transformation.

Lets look at the key agendas of the Government with a focus on the infrastructure and real estate development projects.

Infrastructure Development: The Highways 

A major thrust of the 100-day agenda is infrastructure development, with the Ministry of Transport planning to implement the new planned highways across the country. This ambitious project aims to enhance connectivity, reduce travel time, and boost economic activity. The plan includes constructing over 700 kilometers of new-speed corridors, which will facilitate faster movement of goods and people, thereby contributing to regional development and national growth. The focus will be on adopting sustainable construction practices and leveraging advanced technologies to ensure high-quality and durable infrastructure. Along with the above plans the newly elected government has embarked on an ambitious journey to propel the nation towards sustainable growth, social equity, and technological advancement. This truly is a step ahead in the right direction and will catapult the economy to great heights.

Transportation Modernisation and Infrastructure expansion

Infrastructure development is seen as a key driver of economic growth and social well-being. The government has announced substantial investments in transportation, including the construction of new highways, railways, and airports. Urban infrastructure is also a focus, with plans for smart cities that integrate advanced technology with sustainable practices. The government plans to expand and enhance the transportation network, focusing on the development of highways, expressways, and rural roads. Investments in railway infrastructure, including high-speed rail projects, are also prioritized to improve connectivity across the nation. Several noteworthy initiatives are in the pipeline that include Mumbai Trans Harbor Link, Navi Mumbai International Airport, Noida International Airport, Western Dedicated Freight corridor, and the Bengaluru- Chennai Expressway. With such initiatives India is poised to achieve momentum in the infrastructure domain.The completion of these crucial infrastructure projects is set to transform India's industrial landscape, especially in manufacturing. This will attract international businesses and elevate the warehousing and logistics sectors to unprecedented levels.

Housing and the Real Estate sector - The Indian real estate sector is on an upward trend in the recent years. In the year 2023, the industry saw the highest number of new project announcements. The first quarter has surpassed all the records and is poised for exceptional growth.

The factors responsible for this growth is Indian government’s commitment to affordable housing remains strong through effective government initiatives and programs. These measures significantly benefit the sector, as over 50% of Indian household savings are invested in real estate. The Reserve Bank of India (RBI) maintains a steady policy rate, fostering substantial growth in the housing market. This continued stability is anticipated to further boost housing demand.

Over the past two years, the Indian real estate market has significantly shifted towards sustainable building practices. Incorporating energy-efficient designs, eco-friendly construction materials, and water conservation measures, the sector is redefining living standards. Consumers increasingly seek homes that align with their values. Modern homebuyers, especially from Generation Y, prioritize properties with renewable energy systems, rainwater harvesting, and energy-efficient appliances. 

This also with regards to the Environmental sustainability that is integral to the government’s development agenda. Policies are being formulated to address climate change, promote renewable energy, and ensure sustainable use of natural resources. The government aims to increase the share of renewable energy in the energy mix, implement strict regulations to reduce pollution, and promote conservation practices.

Tracking Progress of Delayed Projects

One of the foremost priorities in the 100-day agenda is to review and expedite delayed projects from the previous five years. These projects, spanning various sectors such as infrastructure, healthcare, and education, are crucial for the nation's growth. The government plans to set up dedicated task forces to identify bottlenecks and ensure timely completion.

Economic Revitalisation

Economic growth is a top priority for the new government. Recognizing the need for a robust economy, the administration has introduced measures to stimulate industrial growth, support small and medium enterprises (SMEs), and attract foreign direct investment (FDI). Policy reforms include simplifying tax regulations, enhancing the ease of doing business, and fostering innovation through research and development incentives.

Agricultural Development

Agriculture remains the backbone of India’s economy, and the government has outlined several measures to support farmers and boost agricultural productivity. This includes modernizing farming practices, ensuring fair prices for crops, and improving access to credit and insurance. Initiatives like Pradhan Mantri Krishi Sinchai Yojana aim to enhance irrigation facilities, while efforts are being made to promote organic farming and sustainable agricultural practices.

The newly elected government in India is poised to implement a comprehensive and visionary development agenda. By focusing on economic growth, infrastructure, environmental sustainability, social equity, and agricultural development, the government aims to build a prosperous, inclusive, and resilient nation. These efforts reflect a commitment to addressing current challenges while preparing India for a brighter future.

How will this benefit trade and business?

India's dedication to infrastructure development is a strong draw for international businesses seeking investment opportunities. The creation of world-class transportation hubs enhances India's connectivity with global markets, making it appealing for multinational corporations aiming to expand.

Additionally, the modernisation of transportation infrastructure, supportive government policies, access to a vast consumer market, and a skilled workforce, along with a favorable environment for foreign direct investment (FDI), make India an attractive base for international companies exploring opportunities in manufacturing, research and development, and service industries.

As Prime Minister Narendra Modi embarks on his third term, the 100-day agenda must reflect a blend of continuity and innovation, positioning India on a trajectory towards sustained progress. By addressing delayed projects, the government is demonstrating its resolve to complete vital infrastructure and development initiatives, ensuring that the benefits reach the populace without further delay. Collectively, these initiatives underscore the government's commitment to inclusive growth, robust governance, and sustainable development.