MUMBAI: Appreciating the RBI concern over checking inflation, realtors’ apex body CREDAI Chairman, Lalit Kumar Jain has cautioned the central bank and the government against stagflation.
Commenting on the RBI’s credit monetary policy, Jain, who is also the CMD of Mumbai-Pune developer Kumar Urban development Limited (KUL), said the powers that be must realize that they cannot afford to sit on slow growth of the economy while addressing inflation.
The economy slowdown is hurting one and all and the continuing price rise, coupled with job losses, could even lead to law and order problems, he said.
“The policy makers should put their brains together, find solutions how on one hand they can check inflation and on other hand keep growth momentum going and prevent the situation from worsening,” he said.
Jain called for concerted efforts to revive the economy and taking a serious look at growth engines like the realty sector.
The prevailing bad economic conditions and the RBI controls have led to NPAs for commercial banks on real estate front; he pointed out and called for loan restructuring of Loan Facilities for Commercial Real Estate sector Loans.
RBI and the government must look at promoting real estate and infrastructure in a big way by facilitating capital infusion as well as policy reforms. “This will ensure revival of economy and job creation,” he added.