India Inc welcomes government stimulus
The total stimulus provided by the Government and RBI so far is pegged at 15 per cent of the GDP
Hyderabad: Indian industry welcomed the Finance Minister’s Aatmanirbhar Bharat 3.0 push to enable job creation and faster recovery of the economy. The total stimulus provided by the Government and RBI so far is pegged at 15 per cent of the GDP. So far the government has announced Rs 29.87 lakh crore stimulus packages in seven installments since the Covid-lockdown.
Anuj Puri, chairman, Anarock Property Consultants, said, for homebuyers, it is a clear added financial benefit to round off the existing offers and discounts. Additionally, the consequential relief up to 20 per cent to buyers of these units under Section 56(2)(x) of the IT Act for the said period will definitely boost demand, especially in the affordable and mid segments.
For developers, this move will help clear unsold stock. There are approximately 5.45 lakh unsold units across the top seven cities priced up to Rs 1.5 vrore while another 49,290 units priced between Rs 1.5 crore to Rs 2.5 crore. The additional outlay of Rs 18,000 crore for PM Awas Yojana (PMAY – Urban) is another welcome step towards fulfilling its vision of Housing for All by 2022.
Chandrajit Banerjee, DG, CII, said, “As has been characteristic of the Government, of stepping in at the right time to give a boost to the economy, she has covered the key sections of society including farmers, workers, and enterprises with a prudent and carefully calibrated set of measures. The ECLGS extension to 26 stressed sectors and rise in its loan limit is a significant announcement that CII was hoping to hear from the Government.”
The Finance Minister’s stress on farmers and workers in the informal sector through extension of PM Garib Kalyan Yojana promises to boost demand in the economy and support low-income consumers.
Dr Niranjan Hiranandani, president, Assocham, reacting to the announcement of the 7th major stimulus package after pandemic by the Union Finance Minister, Nirmala Sitharaman, said, “The measures announced would certainly push the sluggish demand in the housing sector and will also address the issue of unsold inventory in the sector. “
“The additional outlay of Rs 18,000 crore for PMAY over and above the budget estimate will help lakhs of Indians in the urban and semi-urban area to fulfill their dream of a home in such a dire situation,” he said.
Dr Hiranandani believes that by providing fertilizer subsidy of Rs 65,000 crore to farmers and Rs 900 crore for the research & development and of Covid vaccine, the government has once again proved that it does not let go off the focus on the core issues while taking care of the rest of the problem.
Shishir Baijal, CMD, Knight Frank India, said, “FM’s stimulus measures will aid job creation and infrastructure development in the country. Recognition of real estate as a core sector, creating ancillary industry demand and employment, and enhanced Pradhan Mantri Awas Yojana – Urban allocation, will boost the housing demand in the country.”
The Government has increased this limit from 10 per cent to 20 per cent for property value within Rs 2 crore. While this will certainly help the real estate sector liquidate inventory as it brings more home buyers to the fore, the impact will be limited as unsold inventory is highest in Mumbai and NCR markets where properties values are higher than Rs 2 crore, said Sharad Mittal, CEO, Motilal Oswal Real Estate.
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