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India Real Estate for Sale

Friday, August 3, 2007

More urban land, for lower rates

Land is a factor of production. The more expensive it is, the less competitive domestic production would be. Thanks to artificial scarcity of urban land, a whole lot of economic activity is turning prohibitive in India. Hotel rooms, office space, residential accommodation, retail formats, storage facilities - everything is turning very expensive. All these add to the cost of production, already rendered high by poor power supply, a rapacious administration, talent shortage and inordinate time and money to transport goods within the country, thanks to terrible roads and terrifying entry procedures at state borders.