Rapid development is nothing out of the ordinary to the nation of India. At one of the fastest rates in the world, the national economy is currently growing at 9% annually. Progress at this level is positive in many aspects, but it is often extremely difficult to manage.

As a result of India’s economic growth, its real estate market is among the fastest growing sectors of the country. The real estate market is growing at an astonishing rate of about 30% annually. However, India's real estate market is known for its informalities and unstructured legal framework.

Much of this development is highly unregulated and this has resulted in tight lending rates by the central bank. The difficulty in receiving loans for projects is only one issue affecting India's real estate market. The sector is often plagued by a lack of proper land titles, prolonging construction delays, and poor quality in all aspects of the development process. At this point, there is no option but for the Government of India to take action.

Decisions affecting the future development of India's cities are made by the Ministry of Urban Development. Led by S. Jaipal Reddy, the ministry has emerged as one of the strongest urban development governing bodies in the world. Currently, the department is preparing state-level regulations for India's real estate sector.

In other initiatives designed to accommodate the effects of economic growth in India’s cities, the Ministry of Urban Development launched the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in 2005. The goal of the program is to improve the quality of life in cities throughout India. The mission is reform-driven and aims at promoting sustainable cities by improving service-delivery, governance, transparency, responsiveness, financial management and land and property management. The JNNURM covers a total investment of over $20 billion over a period of 5-6 years.

Thus far, the JNNURM has sparked great improvements in many struggling cities throughout India. This proves that government on the national level can be effective in the strengthening of individual cities. With a nation that is known for attracting a wide variety of foreign investment, India is under immense pressure to improve the structure of the real estate sector. The Ministry of Urban Development has projected that positive changes should be noticeable within the next six months.