photo credit: joiseyshowaa
A demand for much cheaper borrowing for home loan customers is among a list of measures drawn up to help the struggling Indian economy.
The Associated Chambers of Commerce and Industry of India (Assocham) unveiled a six-point strategy to get the country’s finances moving again.
Interest rates for those buying property were singled out for special attention, with the trade body demanding cuts and other moves to increase the number of approvals for credit.
Personal income tax should also be slashed by 10 per cent to improve consumer confidence, the group added.
Assocham said:
“Interest rates for housing loans of less than Rs 15 lakh ought to be brought down at seven per cent to create demand and the government should facilitate a guarantee from the National Housing Bank for fresh loans for housing. Currently, lending rates hover between 13 and 14 per cent.”
The proposed measures were outlined as part of a six-point scheme unveiled by group president Sajjan Jindal.
Corporate income tax should also be cut by ten per cent, the plans say, and India’s Central Sales Tax should be scrapped outright.
Last week Bloomberg reported the recent Mumbai terror attacks could prompt officials to take action to prop up confidence in the economy.
The government could provide interest subsidies for housing, along with a raft of other measures, Bloomberg said.
Related posts:
