Niti Aayog Recommends Subvention Schemes for Real Estate
In a presentation given to the Prime Minister Narendra Modi and union finance ministry to revive the economy, NITI Aayog has suggested that even as economic activities have recovered post lockdown, government intervention is required for economic recovery as private investments are unlikely to see an increase. For the real estate sector, the policy think tank has suggested bringing interest subvention scheme to increase demand.
Policy think tank has highlighted that there is a lack of adequate capital for investments, the cost of power and logistics is high, there’s also major infrastructure deficit, and high regulatory burden as major roadblocks hampering growth.
It has highlighted that in FY21 gross domestic product (GDP) is likely to see a contraction of 5.1 percent and also expects no increase in the GDP levels for over two years. The think tank has suggested measures to boost growth and ways to boost demand in the real estate sectors.