With the financial budget being announced just a few hours ago, experts from various sectors have been trying to study the budget and its implications on their sectors. One such sector that has seen little to no attention from the Honorable Finance Minister Mrs Nirmala Sitharaman is the real estate sector, which witnessed a major slump in the financial year 2019-2020
Significance of the real estate sector:
The real estate sector is one of the highest contributors to the nations economy and GDP, only second to the agricultural sector. the financial year 2019-2020 saw a major slump and slowdown of massive proportions. This along with the multicultural and automotive sector witnessed a slowdown not witnessed in recent times. Providing one of the highest employment opportunities to the population, the real estate sector along with the auto sector has been neglected by the Government in recent times. This had a negative impact on the economy and also on potential investors, as the measures taken by the government did little to nothing to reinstate investor’s confidence.
Was the real estate sector shunted?
With the Finance Minister taking over 2 hours to present her vision on the 2020 budget, she spoke little to nothing about the real estate sector. This came as a surprise to many, as not too long ago, the Government showed interest in the sector, by financing various stalled real estate projects around the country, to the extent that it allotted Rs. 6,500 crore for the same. Much was expected from the finance minister, and a lot was riding on her shoulders, to deliver an investor-friendly budget and one that would reinstate ever-dwindling consumer confidence.
Overcomplicated taxation system:
With the taxation system being put into 2 separate categories for one group of salaried individuals, experts and economists are stating that the over complications in the taxation system will only further alienate potential investors, as the complications bring about a host of legal implications. Much was expected from the budget, to deliver on the real estate front and to breathe life into a sector that has seen massive slowdowns, but little to nothing was delivered on those lines.
The coming few days will be crucial to the real estate sector, as many believe that the Finance Minister may come up with ad hoc measures to revive the real estate industry.