As the global pharmaceutical industry recovers from the worst pandemic in history, investors in India’s healthcare sector are hoping for an influx of new investment to prop up the economy.
But with India’s gross domestic product shrinking by 1.7% over the past year, the country’s private sector is not seeing a major influx of private capital, and investment is at an all-time low, according to analysts.
In a country where the ratio of the average worker’s income to the average family’s income is just 0.6%, there is a shortage of qualified doctors to treat India’s poor.
The lack of access to quality medical care means hospitals have been forced to close and the country has become one of the most overcrowded places on earth.
The International Monetary Fund (IMF) has warned that India’s health system is among the worst in the world.
The government has also faced accusations of poor management of health spending, including a lack of investment in basic healthcare services.
India is one of three countries to experience a record number of deaths due to COVID-19.
While the disease has killed some 250,000 people worldwide since its onset in 2015, it has been largely contained in India.
The country has also seen a marked increase in the number of cases and deaths in the past month, from 4,634 in March to 5,078 on Tuesday, according the World Health Organization.
While the coronavirus pandemic has hit the Indian economy hard, the government is still taking steps to help the country cope with the pandemic.
Prime Minister Narendra Modi has launched the government’s $1 trillion Make in India initiative, and on Tuesday announced an initiative to create 250,00 jobs through “Make in India” programmes.
But while the Indian government is trying to boost the economy, the real-estate sector, one of India’s most valuable industries, is still facing difficulties.
With a booming housing market and a growing number of vacant apartments, many of which are being rented for as little as $100 per night, many developers are worried about the economic impact of the pandemics.
“We are not able to make a profit,” said Anand Kale, president of Mumbai-based developers GVK Real Estate Development.
“We are losing money on a daily basis, and we are not getting any help from the government.”
Some developers are starting to take some action.
Earlier this month, the State Bank of India (SBI) began a pilot project to sell real estate on the city’s central commercial corridors.
The pilot project, which will see banks sell apartments on a “per unit basis”, is part of the government-backed Make in New India scheme.
However, the scheme has faced some opposition from developers, and it is yet to be implemented.
Kale said the government should provide the real estate market with the capital it needs to create jobs and stimulate the economy with the help of tax incentives.
“The real estate sector should be part of a holistic solution to boost our economy.
The state should provide a capital to the sector,” he said.
Kaliapalli Kumar, managing director at Arup Group, which owns several residential buildings in Mumbai, said the realty market is still suffering from the COVID pandemic, which has been the worst for the country.
Kumar said that while the government has made strides to improve the realtor-sold-building market, the number and scope of such efforts is still far behind.
“If there is an urgent need, it could be done through the Make in Housing initiative,” Kumar said.
“But if the market has no access to any kind of help, then we need to look at our other business options.”
Kale, who has been managing commercial properties in Mumbai since 1997, said there are many concerns about the viability of the real property market in India, including low vacancy rates, high rental prices, and the lack of a regulatory framework to support the industry.
“When the government tries to make something happen in real estate, they end up killing it,” he added.
The state of Maharashtra, which includes Mumbai, is also one of several states that have witnessed significant growth in housing in the last two years, particularly in the residential and commercial areas.
A large part of these residential projects have gone up in Mumbai and are now being sold to investors.
While real estate in Maharashtra has been rising, developers are struggling to fill the gap left by the housing market.
Developers said that the government was not paying enough attention to the residential market, especially when it comes to the affordable housing sector.
“There is a gap in the regulatory framework,” said Kale.
“There is no clear structure to manage the housing sector in Maharashtra.
There is no transparency in terms of who is in charge of it.”
Kaliakas Real Estate Group, a developer that has developed three residential buildings on the outskirts of Mumbai, had to make several changes