For any country to develop a sound economy, both the country’s real estate and infrastructure need to grow hand in hand and history has been witness to how for any real estate region to perform and grow, infrastructure and connectivity serves as the backbone and vice – versa. With the past two Union Budgets, we have been witnessing how actively the government has been focusing on the infrastructure of the country along with the development of real estate to accommodate the growing population of the country. This is the reason we have seen that for two successive years, the Union Budget has been very accommodative for both infrastructure and real estate in the country. The current government infact came into power riding high on the promises of working towards the mission of Housing for All and work on the same has been progressing on war footing. Also, to ease the loads on all the crowded metropolitans, the government has chalked out plans of establishing satellite towns which can thrive only if we have a sound infrastructure in place. These towns would be developed under the AMRUT and Smart Cities Missions. Metropolitans came into existence because of their superior locations and supreme connectivity but imagine a situation when the entire nation is interconnected like a wired mesh and what impact it will have on the real estate and the overall economy of the country.
This Union Budget saw over INR 3.96 Lakh Crore being allotted towards infrastructure development in the next fiscal year which can be accounted as the single highest amount accorded to this sector in a financial year. Compared to last year’s INR 57,000 Crores, a sum of INR 64,000 Crore has been allocated individually for the development of Highways in the country. This would also include almost 2,000 Kms of coastal connectivity in the country. The government has even worked relentless to increase the productivity of the infrastructure sector wherein the speed of construction of roadways has been witnessed to be increasing manifolds in the past couple of years and are expected to touch around 6,000 Kms in this fiscal alone. Better road connectivity is leading to more industrial growth along them and resulting in more settlement pockets for the population. One ought to understand that this sector does not only contribute towards the above but greatly towards the development of the overall economy when looked with a broader sight.
Infrastructure development is dependent on a lot of subsidiary industries and the sector is one of their biggest consumers in the overall market. Industries like steel, cement, etc. thrive big time on this sector and the supply demand cycle can be used well to develop a sustainable economy. Not only this, with routes open for FDI under PPP model in the sector, we can witness huge influx of foreign exchange in the economy which will end up strengthening it further. Talking of a sustainable economy, one cannot ignore the fact that the overall contribution of this sector towards employment generation hence further providing impetus to the nation’s per capita income. A healthy economy is as equally dependent on the per capita income of it’s citizens’ as much it is on the GDP. There are further plans to develop airports in smaller towns under PPP model which will definitely boost the aviation industry and generate more revenue for the government and provide equal opportunities for these towns to come at par with cities and metropolitans. The villages and country sides are being equally connected through roadways to provide them equal benefits of sound infrastructure and working like this, we will soon be able to live the dream of making the entire nation one single market.
The country is bound to witness major overhauling as much as the infrastructure is concerned. As discussed earlier, almost 100 urban areas are to be developed as Smart Cities which would be based on the TOD models. TOD models are brilliant examples of superior infrastructure and town planning wherein well-designed movement system and facilities, houses, community spaces, plazas, office complexes, activities and smart design are key components in drawing people towards it. Similarly, over 500 towns and cities have been shortlisted under AMRUT where we will see affordable housing taking front seat to fill in for the housing shortage of over 2 Crores in the country. Similarly if the real estate progresses riding high on the above, many other major aspects of the economy are bound to catch pace for the likes of education, organised retail, automobile, etc. Public transport and administrations would have to be beefed up in order to cater to these developing settlements. This overall cycle will end up contributing hugely towards the betterment of the economy and making sustainable by the day.
Overall, we can say that infrastructure, and majorly connectivity is the building stone of a nation. Every resident and user thrives for a habitat which is able to meet there daily needs and, infrastructure and connectivity plays this role of fulfilling the need. For any resident, a decently developed infrastructure in the neighbourhood allows them to live a peaceful life and those who are not the residents of a region are dependent upon good connectivity to commute hassle free and meet their respective needs, which can be official commutation, recreational travelling and others. Thus, real estate sector can only succeed once there exists sound infrastructure and connectivity for its users.