The realty industry is one of the bellwethers of India's economy and contributes more than eight per cent to the Indian economy employing more than 30 million people. It is an important industry as it has a ripple effect on other ancillary sectors. Therefore, any measures taken to uplift the sector will have the potential to revive the overall economy.
Over the past couple of years, the industry has been working towards fulfilling our PM’s vision of ‘Housing for all by 2022’. The Government has also taken proactive measures that are commendable, but given the present market conditions, the industry needs more focused measures to further bolster demand in 2021.
Expectations from the Budget this year:
* A regulatory authority especially for the cement and steel sectors to regulate the price and thereby curb the rise in construction cost and instances of cartelization.
* The Government should adopt a uniform policy across all states in the reduction in stamp duty for various instruments related to real estate transactions, for the next 18-24 months. This would definitely give a fillip to the homebuyers.
* Reduction in premiums for TDR, FSI etc to enable more cost-effective/cheaper products for all end-users.
* Reduction in GST across all sectors of Real Estate, to bring down the overall property cost and push demand.
(The author is the Founder, Chairman and Managing Director at Ozone Group)