Inflation to go down, Infrastructure projects to get boost- Budget to bring in ‘’acche din’’
The entire country, the industry heads, the infrastructure and real estate industries has a lot of expectations from the maiden budget of the NDA government which is expected to set the roadmap for growth and economy in the nation. Hemant Kanoria, Chairman and Managing Director of Srei Infrastructure Finance Ltd urged the Prime Minister Narendra Modi-led NDA government to set some timeline for the implementation of Goods and Services Tax (GST) in Budget 2014.
Kanoria believes that this move will bring transparency and clarity in terms of tax implication on business. He also believes that GST will bring in some degree of uniformity as the complex state lax laws which exist today make it very difficult for movement of goods. It is more difficult in many states to move goods to another state, but easier to import or export overseas.
The good news is that the new government recognizes that high inflation in India is essentially due to supply-side constraints and inadequate infrastructure is largely responsible for this. Hence Kanoria emphasised on the need for investment in infrastructure.
Kanoria also believes that NBFCs (Non-Banking Financial Company) play a crucial role by catering to the credit needs of numerous small and medium enterprises (SMEs). In India’s infrastructure financing the NBFCs provide critical support services (like construction, transportation, etc.) in infrastructure projects. Kanoria wants Prime Minister Modi to look into is NBFCs, especially the Asset Finance Companies (NBFC-AFCs) and Infrastructure Finance Companies (NBFC-IFCs).
Source- The Economic Times
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We expect transparency in real estate industry and single-window clearance for completing the project on time. Infrastructure projects/industry finance options and tax benefit from Budget 2014.
All expects “acche din” with Modi Govt. We are looking for positive news for real estate industries in the Union budget 2014.