THE GOVERNMENT FOCUSES ON BOOSTING LENDING CONFIDENCE FOR REAL ESTATE SECTORS IN INDIA |
Posted: January 23, 2020 |
The real estate sectors in India affect the overall growth of the country. This makes it important for the funds to be invested in the sector to revive it back to a standard position of development. This sector holds the key to growth in several sectors associated with bringing employment rates high, providing jobs, securing economical improvements, etc. Other sections of the country such as the commercial sectors, steel and iron sector, cement, and paint industry rely on the flourishing of the real estate to gain more positive momentum. The government of India granting an alternative investment fund to developers in real estate for stalled and unfinished projects has been a major step towards improving the crisis that the sector finds itself swimming in. Although the implementation and results of the funds are moving slowly, this has given more confidence to developers and investors. In hopes of reviving the trust that consumers have towards the real estate sectors, this initiative was a transforming one. The housing or residential sectors have experienced a low demand due to the number of projects left unattended because of a lack of funds. The government of India is moving towards providing developers loans or funding as most of them have been denied lending help which isn’t helping the real estate sector. Investors are wary of investing in the housing sectors but have been eyeing the commercial sectors. The commercial realty has been blooming and is growing day by day. This is due to economic expansion and the foreign companies flooding the Indian business market. As the Rs. 25000 crore AIF has been provided by the government to cater to the needs of developers to restart the constructions of stressed projects. The important aspect is that the funds be rendered available quickly to the real estate developers to kick start the process. The implementation is what counts. The government of India needs to revise the individual tax rates, as this will enhance the income and in turn, give support to individual spending. This would positively impact the middle-class section of the society, whose major source of income is from job employment. Also, to boost rental housing, 100 percent interest on home loans would be an effective step. The Finance Minister of India Nirmala Sitharaman actively addressing the real estate issues through a series of positive announcements in regards to various sectors such as infrastructure, automobile, real estate, etc. as been impressive. India is mainly a domestic economy that requires consumption and investments to pick up to boost economic growth. The upcoming Budget is proposed to focus on these aspects. Mohit Bharatiya is the author of this article. Find more information about Mohit Bharatiya.
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