How will the budget shape up the sector

With the new government now well settled, the time for the first crucial test is arriving. All eyes are on the budget 2014–15. Every sector and industry in the country awaits the budget that decides how the next one year will shape up the financial stability and economic condition of the country. Real estate sector is considered one of the highest contributors to the Indian GDP and there are various other big industries and sectors that are directly related and affected by the happenings in the sector. Industries such as steel, cement, bank, etc. are directly related to the real estate sector. Any relief to those industries will directly benefit the real estate sector and vice – versa.

The realty sector is expecting big from the new government and hopes this budget will change the scenario thereby helping the developers and customers; which will ultimately boost the economy. Mr. Ashok Gupta, CMD, Ajnara India Ltd. says “There is an uphill task in front of the new government and they have just come in to power. A lot has already been lost in the last few years. The economic condition is in a pretty bad shape too. In order to stabilize down the economy, there will be negotiations and the public will have to be a bit calm. Expecting much at least this year is being pretty harsh on the government. But the least they can do is to work in the favour of the people in most need. The exemption limit of income tax needs to be raised so that the purchasing power of the customers will increase”.

Deepak Kapoor, Director, Gulshan Homz says “In order to strengthen the macroeconomic environment of the country, the government might even take up steps that can lead to discouragement amongst the public. But the people need to understand that much has been lost and the revival process will take a bit of time. For now, this sector needs decisions that will make activities transparent and make the units available to everyone. This begins when prices for units will decrease and this will happen when land allotment rates are reduced”.

The new government has a lot to plan and execute in order to maintain their respect with the public of India. Prashant Tiwari, CMD, Prateek group says “The government needs to present a balanced budget that can help them to revive the economy and at the same time help in fulfilling the dreams of the common man. For instance, home loans needs to be worked upon by reducing the interest rates. Most people spoke about Right to Homes; and to make it possible, this sector requires the most attention and by reducing land rates, raw material prices and interest rates; most people who have lived only on rent will be able to afford their own homes”.

With a short time now left to declare the budget and expectations being sky high, there is a stiff road ahead of us all.

Hrishi Kumar

Hrishi is a young management graduate with experience in the field of branding and marketing.Currently, he is the manager at Integrated Centre for Consultancy Pvt. Ltd (ICCPL)

The views expressed in this article are the author´s own.