Thu Sep 26 13:01:22 UTC 2024: ## India’s Finance Ministry Backs REITs and E-Commerce, Forecasts Strong Economic Growth

**New Delhi, India** – The Indian Finance Ministry, in its latest monthly economic review, expressed its support for the Real Estate Investment Trusts (REITs) and e-commerce industries, citing their significant contributions to the country’s economic growth. The ministry highlighted the positive impact of REITs and e-commerce on the commercial real estate market, job creation, and consumer welfare.

The report specifically noted the success of listed REITs in driving growth in stabilized commercial assets. The ministry attributed this success to standardized market valuation processes, REIT regulations, and improved investor protection measures implemented by the Real Estate Regulation Act and Insolvency and Bankruptcy Code. The ministry also stressed the importance of digital land registry records and strict monitoring by the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) in creating a robust regulatory landscape for the industry.

Regarding the e-commerce sector, the ministry recognized its pivotal role in driving growth within India’s service sector. Citing a study by Pahle India Foundation (PIF) and People Research in India’s Consumer Economy (PRICE), the report highlighted the sector’s positive impact on both job creation and consumer welfare.

The report stated that the e-commerce sector has witnessed a 42% surge in managerial positions, reflecting the increasing complexities and evolving nature of the industry. The ministry also noted a shift towards technology-focused roles and stressed the importance of addressing the skills gap to accommodate these new job opportunities.

The report emphasized the importance of improving logistics and delivery services infrastructure as e-commerce continues to expand.

The Ministry’s report also forecasted a robust economic growth of 6.5-7 percent for the fiscal year 2025, based on recent high-frequency data that aligns with the Economic Survey’s prediction. The Indian economy exhibited a strong 6.7 percent growth in the first quarter of FY25, signaling positive momentum for the year ahead.

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