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The Central Budget - 2016, in general, was a commendable exercise by the Finance Minister. He was able to deftly handle many difficult issues. Thanks to the benefit the country is deriving from low oil prices in the international market, we can only hope that industrial growth picks up the way it is expected by the Government. It is sad that most State Government’s are not keeping pace with the vision of the Prime Minister and the efforts of the Central Government, to give a bigger push to the Indian economy.
The Central Budget has done its bit to give a push to the Real Estate Sector, particularly to affordable housing. So also, the much talked about Real Estate Investment Trusts (REITS), which should help unlock a lot of capital for commercial property developers and help bring in foreign exchange to the country. However, the concept of Smart Cities requires more clarity and much more fund allocation for the initiative to succeed.
Real estate sector continues to be plagued by excessive taxes, duties, charges under various heads by the Central, State & Civic Governments, resulting in an impact of more than 30% of the product price (whether it is affordable housing or otherwise) incurred by the consumer. To realise the dream of ‘Housing for All’ by 2022, an essential element is to reduce the numerous taxes and charges on the housing sector.
5 State Governments are in election mode. The results are important to the present Government at the Centre to implement many major policy initiatives – GST for example. One wonders why so much of governance time is lost due for conducting elections at the Centre, State & Civic bodies at different times? If elections are held together for all, huge saving of resources and time could be achieved. The Indian election commission has the capability & has already excelled in conducting National & State elections very efficiently.
With bank interest rates in the downward mode, if the ruling party in the Centre does well in the State elections & gains majority in the Rajya Sabha, and if the country receives good monsoon during the next few months, there is no reason why the consumer & investment sentiment should not change for the better very quickly. With this hope, optimism for the future continues."
The first 4 months of the new year witnessed Awards galore to Brigade Group's projects & its people: Brigade Meadows was awarded the Best apartment project in its category by NDTV; Orion Mall was considered the Best Shopping Mall in South India; Nothing gives more satisfaction than being recognized by ones own fraternity - CARE Awards instituted by Credai Karnataka considered, in their categories, Brigade Rubix as the Best Commercial building; Brigade Sparkle as the Best dwelling; more importantly recognized Brigade Group's CSR efforts as the Best by a Developer. At a personal level I was recognized for my Outstanding Contribution to the Real Estate Sector in Karnataka. Our CFO Suresh & COO Manjunath Prasad also got recognized by different organisations. Certainly satisfying. This should motivate all in Brigade to continue to perform well & exceed expectations.
Post Central Budget, there is a sense of disappointment by the business & industry. Much was expected but the budget pronouncements fell woefully short. While the new government proclaimed 'Housing for All' by 2022, the budget contained zero incentives or policies to encourage housing. Affordable Housing for the Middle Class & EWS Housing for the poor certainly deserves tax incentives apart from favourable regulations.
With inflation under check, by & large, lower interest rate regime was expected, but that has not happened. While RBI knows best what it is doing, lower rates have the capability to give the push the Indian economy deserves. Increased activity in infrastructure & real estate has tremendous positive impact on the core sectors of industry and will help improve our GDP growth. Our neighbour China is the best example of what improved infrastructure can do to the economy.
Number of our projects have reached the critical stage of completion. It is a challenge our team is ready to face & working hard to achieve before Diwali.
IPL cricket is growing from strength to strength. It has helped spot talent and has given opportunity to many cricketers to show their mettle. I wish similar efforts in other sports also taste success. A nation of billion plus people is bound to have the talent. Right environment & encouragement will help deserving sports people blossom.
Unseasonal rains have created havoc to agricultural sector in many states. We should hope & pray that the country receives good monsoons in the next few months, which should in turn have a favourable impact on the economy.