As of January 6, 2025, approximately 1.38 lakh real estate projects and 95,987 real estate agents have been registered under the Real Estate Regulatory Authority (RERA) across India, according to the Economic Survey 2024-25, as published by The Economic Times. Additionally, about 1.38 lakh complaints have been resolved by RERA nationwide.
The Pradhan Mantri Awas Yojana – Urban (PMAY-U) has sanctioned a total of 1.18 crore houses as of November 25, 2024, with 1.14 crore grounded and over 89 lakh completed. PMAY-U 2.0, launched in September 2024, aims to assist an additional one crore households. Currently, 29 states and union territories have signed agreements to implement PMAY-U 2.0, with approval granted for six lakh houses in FY25.
Under the Pradhan Mantri Awas Yojana-Gramin (PMAY-G), approximately 2.69 crore houses have been completed since 2016. The scheme has been extended to construct an additional two crore rural houses over the next five years, until 2029.
Regarding the Insolvency and Bankruptcy Code, by September 2024, 1,068 resolution plans had been approved, resulting in creditors realizing Rs 3.6 lakh crore—161% of the liquidation value and 86.1% of the fair value (based on 964 cases where fair value has been estimated). The haircut for creditors relative to the fair value of assets was around 14%, and relative to their admitted claims, it was around 69%. Additionally, 79 corporate debtors were closed by sale as a going concern under liquidation, with claims amounting to Rs 1.4 lakh crore, against a liquidation value of Rs 4,678.2 crore. The liquidators in these cases realized Rs 3,674.1 crore.
The union government has undertaken deregulation by implementing process and governance reforms, simplifying taxation laws, rationalizing labor regulations, and decriminalizing business laws. States have also engaged with businesses to identify pain points and reduce the cost of regulations. For example, Haryana and Tamil Nadu amended their building regulations 12 times in the past decade to facilitate construction. Similarly, Punjab conducted grievance redressal sessions with industries and liberalized several building, labor, and fire regulations.
India is currently the second-largest cement producer in the world, after China. The Indian cement industry comprises 159 integrated large cement plants, 128 grinding units, five clinkerization units, and 62 mini cement plants. The current annual installed capacity of the cement industry is about 639 million tonnes, with cement production of around 427 million tonnes in FY24. Most of the cement plants in India are located in proximity to the raw material source, with about 87% of the industry concentrated in the states of Rajasthan, Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Gujarat, Tamil Nadu, Maharashtra, Uttar Pradesh, Chhattisgarh, Odisha, Meghalaya, and West Bengal.
The industry has adequate capacity to meet domestic cement demand, with domestic cement consumption around 290 kg per capita against a global average of 540 kilograms per capita. The government’s focus on mega projects like highways, railways, and housing schemes, coupled with rural development and industrial growth, is expected to fuel significant cement demand. The cement industry is actively working to reduce its carbon emissions, aiming for a 20% reduction by 2030 and achieving net-zero emissions by 2070.
The Indian economy grew by 5.4% in real terms in the July-September quarter of the current financial year 2024-25, which was lower than the Reserve Bank of India’s forecast of 7%. India’s GDP grew by 8.2% during the financial year 2023-24. The country’s foreign exchange reserves stood at USD 640.3 billion as of the end of December 2024, sufficient to cover approximately 90% of the country’s external debt of USD 711.8 billion as of September 2024, reflecting a strong buffer against external vulnerabilities.
The Economic Survey 2024-25 also highlights that India’s real GDP is projected to grow between 6.5% and 7% in 2024-25, indicating continued economic resilience. The survey notes that the domestic growth drivers have supported economic growth in FY24 despite uncertain global economic performance. It also cautions that any escalation of geopolitical conflicts in 2024 may lead to supply dislocations, higher commodity prices, reviving inflationary pressures, and stalling monetary policy easing with potential repercussions for capital flows.
The global trade outlook for 2024 remains positive, with merchandise trade expected to pick up after registering a contraction in volumes in 2023. The survey highlights that leveraging the initiatives taken by the government and capturing the untapped potential in emerging markets, exports of business, consultancy, and IT-enabled services can expand. Despite the core inflation rate being around 3%, the Reserve Bank of India has kept interest rates unchanged for quite some time, and the anticipated easing has been delayed.
In summary, the Economic Survey 2024-25 underscores India’s robust economic performance, significant progress in the real estate sector, and ongoing efforts to enhance infrastructure and governance, positioning the country for sustained growth in the coming years.