The real estate sector puts forth its pre-budget demands
The forthcoming Indian Budget 2014 to be presented by the Finance Minister Arun Jaitley has a lot of expectations from all the strata of the society. The realty sector is a critical sector of our economy and it has been struggling under high mounting debts and lowered demand. Since it has a multiplier effect on the economy and therefore is a big driver of economic growth. It is the second largest employment generating sector after agriculture in India and the government needs to take steps to revive this sector.
The real estate slowdown in the US in 2008 had a ripple effect on all the economies and Indian economy which is highly dependent on the US economy for the IT and ITES sectors also went through a slowdown. After the effect of global economic slowdown in mid-2008, the industry took a U turn and since then the growth is sluggish.
The sector has a huge potential to attract FDI in its various segments and the foreign investors like Japan, China, Singapore etc. have shown a lot of interest in investing in this sector in the last few months.
The realty sector wishes that the government should make the provisions for the following in the Budget:
1. Improving investment climate by reducing legislative uncertainty.
2. Greater thrust on manufacturing and export businesses.
3. Reduce delay in various government approvals.
4. Reduce home loan rates so that more people can afford home purchases. This will give a positive boost to Modi’s ‘’housing for all by 2022’’ agenda too.
5. Budget to be more buyer-centric and make reforms to revive real estate sector.
Source- The Economic Times
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