DELHI: The change in the political landscape and resurgent optimism in the Indian economy have created widespread expectations from the forthcoming Indian Budget 2014.
The realty sector is a critical sector of our economy. 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.
It generates a high level of direct employment, but it also stimulates demand in over 250 other industries such as cement, steel, brick, building material, consumer durables and so on.
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.
However, progress is possible only with the joint effort of both the industry and government. The government must provide financial incentives to developers to build low-cost and affordable housing for the masses.
The real challenges for the realty sector today are:
Lack of clear land titles. Absence of industry status. Lack of adequate sources of finance. Shortage of labour. Rising manpower and material costs. Approvals and procedural difficulties.
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 which result in aggressive approach of tax authorities.
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.
5. Budget to be more buyer-centric and make reforms to revive real estate sector.