India Budget 2018
The budget 2018 has completely focused on areas that have not gained much attention in the past. We welcome this measure by the honorable Finance Minister, which we are sure is a move towards overall economic development. However as real estate is the back bone of the economy, we are slightly upset that there has not been much announcement for the housing sector except for the affordable housing segment.
We are happy that announcements on building 1 cr houses to be built under Pradhan Mantri Awas Yojana in rural areas and establishing a dedicated affordable housing fund under National Housing Bank for priority sector are some bright points to look for. However these are not enough to soothe the negative impact of demonetization and GST that the sector has beared in the past year. The economy was looking for some deduction in the corporate tax. But there has been disappointment here too. Capital gains tax of 10 percent may
bring some investments to the real estate sector.
The sector has been facing some hard time. With the governments focus on affordable housing in the past, we were expecting some announcements on relaxation in the interest rates or reduction in GST or providing an industry status for the real estate sector. However nothing much has been done this time.
Rajesh Mhatre is the CEO- Real Estate of Vascon Engineers Limited