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12 September, 2023
India's real estate industry is undergoing a significant transformation, extending its influence far beyond the property market. With rapid evolution in the real estate sector, India is poised to emerge as a global powerhouse in the construction industry. Currently, it stands as the second-largest employment-generating sector in India, second only to agriculture. As the construction sector gains momentum due to real estate growth, India is on the verge of becoming a global leader in construction.
The real estate sector currently contributes to 11% of Gross Value Added (GVA) growth, as estimated since 2011-12. Projections indicate that it will develop into a colossal $1 trillion market by 2030, transcending the realm of bricks and mortar. By that time, it is expected to contribute 18% to 20% of the country's GDP, playing a pivotal role in elevating India's economy to new heights.
Acknowledging the real estate sector's vital role in India's growth trajectory, the Union Minister of Commerce and Industry has emphasized its significance. He has particularly underscored the sector's role in job creation. As the industry continues to expand, it promises to create even more robust employment opportunities. Recent statistics demonstrate that the real estate sector has made substantial contributions to various industries. Given this growth potential, India is well-positioned to claim the title of the world's third-largest player in the global construction market. Evidently, real estate has a far-reaching impact beyond building structures; it shapes the nation's future.
Addressing the National Investiture CREDAI, the Minister highlighted the real estate sector's critical role as an engine for India's growth. It has been a major source of employment, and it has played a pivotal role in steering the country's growth trajectory. Furthermore, the government has provided generous support to the real estate sector, explaining its resilience in recent years.
In addition to generating employment, the real estate sector is poised to create significant business opportunities. India's startup ecosystem is set to receive a substantial boost from these developments. The 2023 budget places significant emphasis on infrastructure growth, with the central government committing INR 10 trillion to infrastructure development. This investment will catalyze growth in the real estate industry.