As you all are aware that at present challenging period for the real estate sector inIndia particularly for the residential property is still exists with little sign ofimprovement. This extended phase of slowdown is a cause for concern not only for theInvestors but for the whole economy. In my view joint efforts of both the Industry andthe Government are required to revive the sector. Due to increased Non-performing Assets(NPAs) especially in the Real Estate Sector flow of fund into the sector hascome to a standstill resulting into delay in delivery of projects. The Government mustfacilitate flow of funds to the sector and further streamline approval and sanctionprocesses. The India's GDP during 2016-17 was estimated at 7.1 per cent as compared to the7.6 per cent in 2015-16. RBI has also been gradually reducing the interest rates. Due todemonetisation Growth in Gross Value Added (GVA) in the fourth quarter FY17 was 5.6%versus 8.7% in the corresponding quarter in the previous fiscal GVA for constructionsector for the FY 2017 was at 1.7% versus the 5% recorded in FY16 while for real estatesector GVA for the entire FY17 stood at 5.7% as compared to 10.8% registered in FY16.
FY 2016-17 was an eventful year for transformational journey of the real estate sectorin India witnessing demonetisation of high value currency notes enactment of landmarklegislation viz. Real Estate (Regulation and Development) Act 2016 [RERA] betterincentives for affordable housing e.g. Pradhan Mantri Awas Yojana (PMAY) Credit-LinkedSubsidy Scheme (CLSS) and reforms like Goods and Services Tax [GST] regime. While theabove reforms introduced during the year under review are significant the Governmentshould take into account the necessity to ease the transition especially in a competitivemarket economy by acting as an enabler and facilitator even while exercising strictregulatory control.
During the year under review your Company's primary focus was on scaling upconstruction activity at the project sites and thereby speeding up the delivery offinished product. Accordingly all its actions were directed towards this objective. Theseactions resulted in an increase in delivery volume during the year to 5.18 million sqft asagainst 3.99 million sqft during the previous year. Despite the adverse conditions handingover in 56 projects across regions is in progress. Company is continuously engaging withall the concerned parties viz. customer groups banks local authorities contractorsetc. to put in place mechanisms to ensure unhindered progress of projects and reassurethem of its commitment to delivery. Primarily Non-residential part has generated cash forthe Company as the Company has sold 2.24 mn sq ft commercial space out of total 2.75 mnsq ft total area during FY 2017.
Your Company takes pride in being a responsible corporate citizen and continuouslycontributes to various activities involving labour welfare safety environmentalprotection education etc. I sincerely thank all stakeholders for continuing to reposetheir faith and trust in the Company.