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7-13 November 2014

RNI No. HARENG/2011/39319, Postal Regn. No. GRG/35/2012-2014

Vol. 4 No. 12  Pages 16  ` 10

A Foreign Realty { Abhishek Behl / FG }

write to us at letters@fridaygurgaon

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he easing of FDI (Foreign Direct Investment) norms for the Indian construction industry is going to help the real estate sector, which has been gasping for funds after the banking system turned off the ‘easy loan’ tap for many realtors - a ‘facility’ that they had begun to take for granted. Rather than RBI having to step in to save an industry from a severe downturn (as central banks in other countries have done), the government has decided to instead ease the rules and regulations pertaining to FDI in the real estate sector. This will make it easier for foreign investors to enter the market, transact and make profitable exits. As per the new rules, the government has reduced the ticket size of FDI-eligible projects from 50,000 square meters to 20,000; the minimum capital requirement has also been reduced from 10 million dollars to 5 million dollars.

{ Barnali Dutta/FG }

write to us at letters@fridaygurgaon

T

he 20th Century, often named as the Space Age, also witnessed great strides in the fields of science and technology, medicine and numerous other disciplines. The last quarter of this era was also the harbinger of a new concept of globalisation – through various means of communication and access to information. This has been reflected in the amazing Information Technology (IT) sector revolution. Extensive and effective computerised networks, particularly over the Internet, have lent a big fillip to commerce, by helping in the identification and evaluation of almost all products and services. This development of e-commerce has also helped in streamlining the modes of procurement of raw materials, production systems and the management of logistics – apart from of course marketing, in both developed and developing economies. Such a strategic shift in the relevant paradigm

Further, an investor will be able to make an exit three years from the date of final investment. The government is looking to revitalise the real estate and construction sector, which has become a drag on the economy. While the real estate industry has welcomed the move, there is some apprehension on whether this would help create another ‘bubble’ – especially with the allowance of a shorter term investment, in this long gestation period industry. Real estate analysts are hopeful that FDI in real estate will not only encourage the builders in invest in new areas, but also help in the completion of a large number of housing projects that have been delayed due to lack of funds. These builders should now be able to more easily rope in private equity funds, NRI investors and financial institutions. Sanjay Sharma of Qubrex says that the easing of FDI norms might help the industry in the short term, Contd. on p 5 

Onhand versus Online

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has led to the boom of ‘online retail and trade’. The youth in particular have been highly affected by these ‘dot com’ trends. Today even MBA students from top schools feel it necessary to hone their skills in e-commerce. Riya, who wants to pursue studies in e-commerce, says, “Online shopping is fantastic. Though my pocket money is very low, I am sometimes able to buy international brands at very attractive rates. I have even bought electronic goods online. Of course I do agree that sometimes the

colours of the materials differ from what they show on the website.” Seems that even in a WYSIWYG (What You See Is What You Get) world, sometimes WYSINWYG. Online retail is catching up fast, by helping buyers access, first hand, the information on any product or service to the minutest detail. Retail trade over the Internet is growing exponentially, especially in consumer durables. Apart from the global major Amazon, a couple of Indian companies, such as Flipkart, Snapdeal, Jabong and Myntra are also

doing roaring business. Reportedly, on the occasion of this year’s Deepavali festival, Flipkart recorded a turnover of around Rs. 7 crores in a single day. On their part, armed with smartphones, the busy-as-bees customers believe that they have been rendered ‘personalised’ service. Their bonanza lies in the attractive discounts offered by the online trading houses. However, with more customers by the day using the Internet for shopping, the ‘regular’ retail Contd. on p 4

WhatsApps HUDA: 09555831832 (for reporting sanitation issues) Police: 08586976050 (for logging any complaint or reporting any crime)

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Chain snatching is becoming a worrisome crime – even the reported cases have almost reached 50 a month!

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The Swachh campaign has ‘reminded’ the Administration of its 2013 ban on polythene; this time it has been prodded on by the local MLA, Rao Narbir Singh. DC Shekhar Vidyarthi has vowed to crack down on both the users and suppliers of polythene; he has given them a week’s time to ‘shape up’.

Friday gurgaon 7 13 november, 2014  

..be the change you wish to see

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