For India Inc., there’s good news – a slew of measures, ranging from tax sops to ease of doing business aimed at providing a boost to the sagging fortunes of the Indian economy were announced by Finance Minister Nirmala Sitharaman on the evening of 23rd August. The measures announced are expected to boost sentiment amongst NBFCs, HFCs and even MSMEs.
From the perspective of real estate, infrastructure and construction, it translates into good news. Prior to the announcement of the slew of measures to revive the real estate, infrastructure and construction sectors, the Hon’ble Finance Minister Govt. of India, Smt. Nirmala Sitharaman along with senior officials met a delegation from India’s Housing and Infrastructure industry on 11th August.
The problems of liquidity crisis and fiscal stimulus amongst many others were discussed and the announcements made by the Smt. Nirmala suggests the Hon’ble Minister’s attention and action on the same, Dr. Niranjan Hiranandani, Founder & MD, Hiranandani Group said in a statement.
Globally, real estate and infrastructure growth have proved to be drivers of economic growth as also job creation, and in India, it will be no different. Real estate and infrastructure being given a boost will positively impact GDP growth as also create jobs.
The liquidity crisis and the need for tax rationalization are the two major challenges facing India’s real estate and infrastructure industry, and the Hon’ble Finance Minister’s announcements should result in resolution of the challenges, and should go a big way in enabling Indian real estate and infrastructure play its role in enhancing GDP growth as also creating jobs, Dr. Niranjan added.
Some of the measures from the announcement include –
- INR 70,000 cr for bank recapitalization – NBFCs to get more money for passing it on.
- Banks to pass on rate cuts to buyers.
- Capital Loans to Industry cheaper.
- Tax withdrawn on capital gains.
“Two more sets of measures will be announced, one as early as next week,” Smt. Nirmala said, ending her announcement by reiterating the government’s commitment towards reform, simplification, debottlenecking and increasing the ‘ease of doing business.’