Prime Minister Narendra Modi on Tuesday said the government will unveil a Rs 20 lakh crore package to help nurse the economy back to health. A new set of reforms will soon be announced by Finance Minister Nirmala Sitharaman which will be focused on and, labour, liquidity and legal frameworks that would power India’s push for self-reliance.
The announcement of the coronavirus relief package has brought a sense of comfort among real estate leaders.
Dr Niranjan Hiranandani, President-ASSOCHAM & NAREDCO, told Realty Buzz IN, “Long awaited announcement of a fiscal stimulus package of Rs 20 lac crore, nearly 10% of Indian GDP, is truly commendable- a shot in the arm to revive the drowning economy. Lauding India’s biggest visionary document, economic stimulus will emphasize on key economic issues like land, labours, liquidity and law which is indeed a thought-provoking reform. India Inc congratulates PMO for carving out new economic drivers as infrastructure, demography, economy, technological and supply chain system for India’s GDP growth engine. This sets direction for the next development growth areas to emerge as self- reliant India with an enhanced focus on local demand consumption theory.
Appreciating the sentiment of the PM, Dr. Hiranandani further added, “the economic package is meant for labours of country, for that farmer of the country, for the middle class of our country which is the broad segment of the demographic pyramid of the nation, and most important the taxpayers who contributes to the development of the country.”
Further to today’s announcement by FM’s Press Briefing on special economic package announced by Mr. Modi, Mr. Anshuman Magazine, Chairman & CEO – India, South East Asia, Middle East & Africa, CBRE, told Realty Buzz IN, “Hon’ble Finance Minister Nirmala Sitharaman today introduced progressive provisions for the MSMEs, NBFCs, contractors and real estate project registrations. The announcement to treat COVID-19 as an event of ‘Force Majeure’ and as an ‘Act of God’, and permission to extend project completion timelines and other statuary compliances under RERA by 6 months is a positive step for the developer community.
It will enable them to deliver projects to the end consumer under the new timeline. In addition to this, the announcement of liquidity measures for NBFCs and HFCs is also an encouraging step and will provide much needed relief to the sector.”
Jaxay Shah, chairman, Credai National, said, “We welcome the prime minister’s announcement of the 20 lakh crore economic package for a self-reliant India and look forward to the series of announcements by the finance minister to help uplift the economy during this unprecedented crisis. We are hopeful for a bigger boost to the real estate sector where both demand and supply concerns will be addressed.”
Money Control quoted Shishir Baijal, chairman and managing director, Knight Frank India, “Credit squeeze and weak demand are the two main concerns facing the real estate sector. The Reserve Bank of India (RBI) has already been injecting liquidity into the system, but the more critical aspect would be for the banks and NBFCs to start lending. Support to the banking sector in the form of immediate and meaningful capital infusion by the government will help push up credit growth in the economy. Further, post recapitalisation, the banks should look at a one-time restructuring of developer loans.
The other critical aspect would be measures to boost demand for real estate. In these difficult times, the government should look at a temporary reduction or waiving of GST rate for the sector. Further, income tax benefits for home loans will also help support demand for housing and help achieve the government’s objective of Housing for All.”