Reasons for FDI changes
Indian authorities had maintained strict rules on foreign property investment because of concerns over the type of speculative capital flows that led to property bubbles in cities such as Bangkok, Jakarta and Kuala Lumpur in the 1990s.
But with demand for buildings soaring, Indian construction executives pressured the government to allow the kind of inward investment in property seen in South Korea since it eased its rules in the wake of the 1997-98 Asian economic crisis.