Col. RS (Pickles) Sodhi, MD of Alpha G:Corp, gives his response to the latest budget.
Overview of proposed budget plans:
Col. RS (Pickles) Sodhi MD-Alpha G:Corp
This maiden budget by the new government had to be cautious due to the present state of the economy, especially the alarming fiscal deficit. The FM while being prudent, has displayed a positive vision in the long-term, by addressing the concerns of all core and crucial sectors like, infrastructure, banking, insurance, agriculture, education and housing among others. Where real estate is concerned, he has announced an initial Rs.4000 crore towards the mission to incentivise the development of low cost housing in urban areas. There will be a marginal increase in property demand due to the higher tax deduction benefit on interest payment, which will prove a boon for existing home loans. The FM also proposed providing necessary incentives for REITs to cut pressure on existing bank lending rates. The proposed measures to encourage smart cities and slum development to be included in Corporate Social Responsibility, will have a far reaching impact if implemented judiciously. However, the much-awaited industry or infrastructure status to the real estate sector has been ignored once again. Had the FM taken the initiative in this regard, real estate, which is the second largest generator of employment in the country would have got the required shot in the arm, with better loan structuring and interest rates.