Budget 2020: How to put the economy back on track?

Budget 2020: How to put struggling economy back on track?

Representative image. (Getty images)

By Sudhanshu Kejriwal

"The FM has a huge task at hand to stimulate growth in the realty sector and getting the economy back on track. There have been several hints from the government for providing rebates to individual taxpayers.  While this will increase the disposable income of an average consumer, but this alone may not be enough. While the Government will look at increasing confidence in the economy for FDI investments, possibly via further divestments, increasing infrastructure spends and easing FDI investment norms; let's focus on what we would like for the Realty sector from the upcoming budget. 

The industry would like to see a solution for the current liquidity crunch in the market. Allowing institutions to restructure loans can be a good measure. Apart from this, there has been a long-standing demand for the realty sector to be treated on a par with other sectors, wherein making land cost a part of total project costs to be funded can be a step in the right direction. 

Given the pile-up of stalled projects, a prompt disbursal to late stage projects from the INR 25000 cr stressed fund will instill confidence amongst developers and home buyers.  Extending the sunset clause for  SEZs will further boost the commercial realty in the country. There has been a record uptake in commercial real estate leasing in 2019-20, If the FM provides more incentives to developers and occupiers, this will add growth in the sector. The FM could also look at providing incentives to alternative asset classes like warehousing, co-living, and co-working spaces, to boost growth and provide more options to developers and investors. Further incentives to the PMAY scheme will contribute to further growth of this segment. Another important policy measure that the industry expects from the FM is that of having a Unified Stamp duty structure across India, like the GST."

(Sudhanshu Kejriwal, Co-founder & Managing Partner, EverVantage)