It is certainly not an unknown fact that the Indian economy is not doing its best. The massive downfall of the economy has indeed created much chaos amongst various sectors.
In recent news, the finance minister Nirmala Sitharaman said that the government is working with the RBI (Reserve Bank of India) in order to help all those who are struggling in the realty sector.
The Sector is in need of a booster, says Nirmala Sitharaman
Speaking at the NSE event,the finance minister said, “The government is very keen and is working very clearly together with the RBI to see how best we can, where necessary, tweak the existing norms to help the people who are affected in the realty sector.” as quoted by the news agency PTI.
Sitharaman even admitted that the capital sector is in great of any form of the booster; a catalyst to help it revive. Therefore, keeping all this in mind, she had earlier came out with various booster measures. During the same event, she said that the government has not fully addressed the problems faced by the real estate sector, but is planning to do in the coming future.
Sitharaman addressing the participants at the NSE (National Stock Exchange) said,
“Government of India is very keen and is working very clearly together with RBI to see how best we can, where necessary, tweak the existing blocks to help the people who are affected in this sector, which I have not really completely addressed till now,”
It wasn’t too long ago that the government had announced a special fund of Rs. 10,000 crore for the real estate sector. Not only this, but she also revealed that ECB (The external commercial borrowings) guidelines will loosen up a bit in order to aid the housing developers achieve overseas funds.
She has also thrown some light on the fact that the government over the span of the last few months has taken significant measures. It has also declared several interventions since August to arouse the economy in terms of consumption and demand.
Hinting that some funds had approached the government and if they get proper support, they are also planning to invest it in the real estate sector.
“There are alternative funds, which are now approaching us saying we would like to do something with you all. So long as there is some support mechanism available for reviving the real estate sector,”
Revealing the reason the government is projecting massive importance onto the real estate sector, she said it is being done solely because to prevent other sectors from getting affected. Since the real estate sector has the potential to directly affect various other sectors of the economy including its core industries, along with an ample number of middle-class home buyers.
A unified approach is needed
The chairman of the Securities and Exchange Board of India (SEBI), Ajay Tyagi was also present at the occasion. He said that the advancement of the bond market demands more consideration and a unified approach by all the regulators.
Mr. Tyagi said,
“The present NPA position of banks adds urgency to such a development with a view to providing an alternative route for raising debt by entrepreneurs. A deep and well-functioning bond market would further add heft to the capital market in India,” Mr. Tyagi said.
Nonetheless, the fact that the entire realty market was demanded heavily on the black money was massively affected by it and is yet to recover from the triple shocks. Along with this, the liquidity catastrophe has also hit it hard.