photo credit: Nimrod Bar
India’s real estate market bosses have rounded on the government, saying a new stimulus package is “highly inadequate”.
Officials had earlier unveiled an extra $4 billion in spending over the rest of the financial year, while a series of rate cuts also saw stocks make strong initial gains.
But property representatives and other economic figures have said the move will fail to create buyer demand and jobs.
The Associated Chambers of Commerce and Industry of India (Assocham) conducted a spot survey of 150 company bosses after the announcement, with 90 per cent saying it was not enough.
Assocham said:
“According to those surveyed, it would only have a marginal impact on industrial revival in areas like textiles, real estate, cement, steel, automobile and engineering.
“What is needed is bolder doses of liquidity at relaxed interest rates.”
Assocham said bosses called for a $20 billion independent infrastructure fund and interest rates of less than eight per cent.
The group also listed the real estate sector among four areas which would not get enough out of the new package.
However, the group’s survey also showed about 70 per cent of the company executives surveyed thought the new measures would help to stimulate some buyer demand in the housing sector.
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