Real Estate Sector Key to Elevating India to the World's Third Largest Economy: Pradeep Aggarwal

New Delhi: During the recent National Conference organized by ASSOCHAM, focusing on the evolving dynamics of real estate in India's development journey, Pradeep Agarwal, Chairman of the National Council on Real Estate, Housing, and Urban Development at ASSOCHAM, and Founder and Chairman of Signature Global (India) Ltd., joined Sanjeev Kumar Arora, a distinguished member of the Gurugram Bench of the Haryana Regulatory Authority, alongside other dignitaries.

On this occasion, Aggarwal, highlighted the critical role of the real estate sector in elevating India to a top global economy.

While discussing the interim budget, he pointed out that it did not have much of significant policy integration but highlighted a notable aspect—the ambitious goal of achieving a developed India by 2047. In a country like India, where infrastructure development is crucial, he emphasized the pivotal role of the housing sector. He stressed that addressing the housing shortage not only fulfills the basic need for shelter but also drives substantial job creation. He also emphasized that achieving a developed India would not only ensure every family has a home but also generate employment opportunities across various sectors. Expressing a strong desire for India to rank among the world's top economies, he stressed on the importance of collective contributions towards the nation's prosperity.

Further discussing the economy, he emphasized that we are on the brink of an era of unprecedented change, reflecting the need for a positive outlook towards the Indian real estate market. Currently valued at Rs 24 lakh crore (approximately $300 billion), our real estate sector serves as the backbone of the country's economy, making substantial contributions to GDP and presenting abundant investment opportunities. With ambitious targets set for the sector to contribute 13.8 percent of GDP by 2034 and 17.5 percent by 2047, the sector is poised to play a pivotal role in India's journey towards becoming a developed economy.

The demand for residential properties is steadily increasing, boosted by the Government's robust infrastructure development and investor-friendly policies. He highlighted how significant policy reforms like the Credit-linked Subsidy Scheme under the Pradhan Mantri Awas Yojana, as well as reforms such as RERA and GST, have significantly strengthened investor confidence. These reforms have successfully attracted both global and domestic investors to the sector.

Knight Frank's Report projects that over the next decade, about 70 million Indian families will move towards home ownership, creating a robust demand for new homes. This surge is expected to contribute up to US$906 billion to the Indian economy.

The upcoming Union Budget 2024- 25 presents promising opportunities to address this demographic shift. Through ASSOCHAM, we intend to advocate these opportunities to the Hon’ble Finance Minister. Key expectations include revival of the Credit Linked Subsidy Scheme in urban areas, to promote affordable housing solutions and alleviate financial pressures on middle-class families by reducing EMIs. By promoting increased homeownership, these efforts will catalyze economic activity across sectors, from construction to consumer goods, thereby advancing India's journey towards sustainable economic development.

This highlights housing's crucial role in promoting inclusive growth, improving living standards, and establishing India as a vibrant center for global investment and economic progress.