NEW DELHI, 13 April 2023 – Consistent and coordinated efforts are needed between the public and private sectors for economic growth to be sustained in India. This was a key takeaway in the Asia Pacific Real Assets Association (APREA) India Annual Conference, held at the Taj Palace in New Delhi.
India is poised to become a USD 5 trillion economy by 2025 and USD 7 trillion by 2030, according to Chief Economic Advisor (CEA) V Anantha Nageswaran. 1 The APREA conference explored how this full potential can be realized through active collaboration between regulators and the private sector, comprised of developers, institutional investors, investment and asset managers, and other stakeholders in the real assets industry.
K. Raheja Corp President and APREA India Chapter Chairman Neel Raheja is optimistic about the ongoing developments that are happening in the industry.
He shared that the real estate sector attracted foreign investment of around $24 billion during 2017- 21 period, a major driver in India's rise as an economic power on the world stage. For investments to be sustained, Raheja noted that supportive policies and regulatory environment remain crucial.
“In the last 6-7 years, the real estate sector has seen several progressive regulations such as RERA, REITs, etc. New sunrise sectors like student housing, data centres, and warehousing are expected to provide the necessary boost to the real estate sector, with large institutional participation,” he said.
Moreover, Raheja highlighted that infrastructure continues to remain the focus area of government spending with over US$1.5 trillion planned for investment in railways, roads, and other infrastructure over the next five years.
He noted APREA's vital role in the industry ecosystem, as a voice of its members in India.
“APREA has played a key advocacy role, working with all stakeholders including SEBI, various government bodies, etc. in providing a conducive environment for growth of the real estate and infrastructure sectors,” he said.
APREA CEO Sigrid Zialcita has likewise emphasized that the synergy between the public and private spheres is necessary for the advancement of the industry and the economy in general.
“Investors and sponsors are drawing confidence from the evolving regulatory framework, transparency, and sustained institutionalization of the market,” she said.
In particular, Zialcita pointed out REITs and Infrastructure Trusts (InvITs) as an area where thegovernment and the private sector must continue to work together.
“We believe that the clear, stable, and tax-efficient framework will continue to attract domestic and foreign capital to the evolving REIT and InvIT asset class, helping to maintain their position as an increasingly preferred investment product,” she said.
“The fundamentals and the right structures are in place for the development of a vibrant REIT and InvITs sector in India, which by all counts, is poised for accelerated growth into the decade,” she added.
