by Dr. Niranjan Hiranandani
New MODI 2.0 government is all geared to set the ball rolling with its first union budget presentation on 5th July. With this, the Indian real estate sector builds the wish list in anticipation to give much-required impetus to the slow-moving sector.
Real estate is highly labour intensive with huge employment generation of nearly 14% of the total employment. It is one major sector contributing towards the country’s GDP growth of nearly 7%, beyond providing a basic shelter above the roof to all its citizens.
Expectations from industry stakeholders revolve primarily around redressing liquidity crunch- an oil of India’s growth engine. The choking of liquidity is taking a toll on the health of companies and further inflicting financial damage. Quick corrective steps should be undertaken by apex bodies and government to pump in enough liquidity in the system to bring economic growth on track. Further, expectation lies ahead in the rationalization of taxes by subsuming stamp duty in the GST, extending Input Tax Credit to the commercial segment, reducing corporate tax, abolishing of MAT to provide thrust to SEZ developments. Another most imperative expectation is to frame the National Rental Housing Policy in order to meet the target of Housing for all by 2022. In addition, we expect improvisation in Ease of Doing Business in order to grant quick approvals under one roof and avoid any further delay and discrepancies.
We hope Union Budget to be inclusive of provisions that provide a conducive environment for macroeconomic goals, improved governance, foster a strong foundation and formalization of the economy.
From the Budget, real estate expects announcements which lead to growth, which in turn, will transform the economy from ‘Developing’ to ‘Developed’.