The government today fully opened up the construction development sector for foreign investors - a move that will create more jobs and boost economic growth.However the government has barred the sale of undeveloped land by foreign investors to prevent speculation in real estate.Announcing the decision of the Cabinet Committee on Economic Affairs, commerce minister Kamal Nath said FDI up to 100 per cent will be allowed under automatic route in townships, housing, built-up infrastructure and construction-development projects.Construction development projects would also include housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure.The government approved 100 per cent FDI in construction in order to catalyse investment in a vital infrastructural sector of the economy, Nath said."It is expected that allowing investment on the automatic route in the construction and development sector would have a multiplier effect on the economy by boosting construction activities of all types," he said, adding it would create employment not only for skilled and unskilled labourers, technicians and artisans but also for engineers, architects and designers.The move would also lead to spin-off benefits to manufacturing sector particularly construction material industries like cement, steel and brick making.Allowing 100 per cent FDI will also ensure rapid increase in built-up infrastructure as well as improving infrastructure.
