Huge potential in real estate: Arun Jaitley

Emphasising on the need for more townships, suburban townships and smart cities to lead the economic development of India, Union finance minister Arun Jaitley said that the real estate sector has huge potential for growth and hoped that the period of slowdown would end soon.

Mr Jaitley was delivering a speech on the ‘Role of Banking and Finance in Real Estate Development in Mumbai’ organised by CREDAI-BANKCON-2015. Mr Jaitley said the sector would be the next big mover as far as the Indian economy is concerned, but added that the industry must survive on market economy and subsidies should not be the essence of survival.

The finance minister said the government was committed to provide housing for all — a dream project of Prime Minister Narendra Modi, and added they would adopt a positive approach. Mr Jaitley said easier availability of land was crucial to realising the dream of affordable housing. “It is not cheaper availability of land — it is easier availability. If we complicate procedures too much, then we will be preventing people from acquiring affordable homes,” he added.

About the taxation proposals made by CREDAI, the minister suggested the real estate body make a presentation before the newly appointed committee reviewing the Income Tax Act.

Mr Jaitley said inflation had been brought under control and the Reserve Bank of India had also reduced interest rates four times this year, and these measures would impact the sector positively. The minister added that recapitalisation of public sector banks would give more strength and muscle to the banking sector to lend.

Mr Jaitley said the newest norm in the world was volatility and turmoil. “It is a challenge for India, where as we remain globally integrated, our systematic firewalls have to be such that our ability to resist volatility and turmoil is strengthened,” he added.

Speaking at the conference, Maharashtra chief minister Devendra Fadnavis said his government remained committed to reforms. He assured that the government would ensure total transparency by creating e-platform to provide a hassle-free business environment.