Real estate reforms can lead to GDP growth
New Delhi- One of the key ideas to increase the gross domestic product (GDP) growth in India are the reforms in the real estate sector. As per an official of a real estate association, the tax reforms and the steps to cater the low cost funds via external commercial borrowings will result in an increased GDP growth.
It was stated that the realty sector has a larger impact on GDP generation through more than 250 manufacturing and services industries which includes the cement and steel.
Apart from this, real estate also plays a major role in boosting economic activity and job generation. It is vital that the government supports the real estate sector in order to achieve a growth rate of about 7-8 percent.
The official also said that the country’s residential development should be taken seriously to eradicate the housing needs for the public.
The budget 2013 is expected to grant an industry status to CREDAI (the apex representative body of builders) followed by measures to cut down home loan rates and bank support for various project developments. He also stated that affordable housing and income tax will provide a relief to the residents.
The various prevailing policies concerning the sourcing of bank funds are quite unfavorable as per the builders and this eventually does not help in the increase of house supply. An industry status to the housing sector will help the builders get an easy access to bank funds.
The time consuming external commercial borrowings should be out under automatic route and not approval route.
The reforms in the tax sector will also reduce the tax load on the projects of up to 50 percent of the sale price. Also the grave issue of the project delay should also be taken care of. Whereas places like Punjab have projects cleared within 48 hours as per the deadline and the projects eventually get a clearance.
Initiatives like that of Bihar and Gujarat should be followed in every state wherein the clearance is a speedy process.
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CREDAI, Delhi NCR, gross domestic product (GDP) growth, Income Tax, increased GDP growth, manufacturing and services industries, New Delhi, Real Estate Sector, real estate sector in Delhi, Realty sector, Residential development
