It is heartening to note that in spite of drought, religious fundamentalism, border tension and interstate river disputes, the Indian economy is growing at a healthy rate of 5.5-6% this year. While it shows our potential, India needs to set higher targets and benchmarks against countries like China, which is fast becoming an economic superpower.

Lower interest rates on housing loans, attractive tax incentives, reasonable property prices and increasing affordability due to growth in per capita income have brought down the income:price ratio from 1:13 to 1:6. The spur in demand for housing with its high multiplier effect will surely have a positive impact on the whole economy. Software industry continuing to grow at

30% + per annum will give an added fillip to Bangalore's housing sector.

Considering the importance of the housing sector, without upsetting the apple cart, the government should eliminate some of the inefficiencies that are constraining the sector—rationalization of stamp duties to reduce transaction costs (presently as high as 12%–14%+), remove/reduce multiple sales tax, facilitate mortgage financing and remove red tape to reduce the time for several approvals. Progressive states like Karnataka have already rationalized property taxes and withdrawn stumbling blocks like the ULC Act. Other states should follow this lead.