From a macro-economic perspective, the budget needs to do a fine balancing act between growth and measures adopted to exit the fiscal stimuli. This would effectively decide the course of all policy and corporate decisions in the next fiscal.
Significantly, according infrastructure status to the real estate industry is vital for the sector's growth as building new townships are similar activities as building large infrastructure facilities. If it is accomplished, banks could extend loans to the industry on similar norms as they adopt for infrastructure companies.
Therefore, integrated townships projects should be given incentives at par with infrastructure and single window clearance mechanism should be introduced for such integrated townships to ensure efficient execution.
Also, tax rebate to the developers for developing budget homes/EWS housing would help bridge the huge housing supply gap. Varied and high stamp duties across different states are still acting as a major impediment to the growth of real estate. Stamp duty needs to be brought down further to 4-5% and made uniformly applicable across all states.
(Mr. Shravan Gupta is the EVC and MD of Emaar MGF Land Ltd)
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