It was generally expected that if real estate can recover its magic, there is trust that the Indian economy would likewise come back to its 8+% development rate soon. So as to control the spread of COVID-19, the lockdown which was forced before the nation over has been reached out with halfway alleviation given after 20th April in certain parts or districts of the nation. The greatest pandemic faced by humanity in longer than a century, which began in China and before long inundated the whole world including the greater part of the developed and developing countries, has affected everyone. With limitations on the movement of individuals just as merchandise and services, notwithstanding a portion of the fundamental administrations, the financial activities are right now at a halt. Obviously, the lockdown would have an imperiling sway on the economy.
The early growth pointers
There is a close to an accord among the greater part of the business analysts that World economy would slip into a downturn, with huge numbers of them in any event, foreseeing that the present shutdown would be far more awful than that of the 2008 money related emergency and next just to the 'Great Depression'. The IMF's Economic Counselor has named it the 'Incomparable Lockdown' and has evaluated the total misfortune to worldwide GDP more than 2020 and 2021 at around $9 trillion, which is more noteworthy than the economies of Japan and Germany set up. Fortunately, India is among the bunch of nations that is anticipated to record positive development, and at 1.9%, India's development rate is anticipated to be the most noteworthy among the G-20 countries.
Measures taken by Government
To control the effect of the pandemic, Governments and specialists over the globe have reported a few helpful measures. The United States has passed a record $2 trillion Corona alleviation package. Different nations have likewise reported comparative measures. Locally, the Indian government, as well, has reported a relief fund to the tune of Rs 1.7 lakh crore, which is for the most part focused on financially more fragile areas of the general public. Contrasted with alleviation package reported by a portion of the significant economies, the relief bundle declared by India is a lot lesser as it is just 2% of the GDP when contrasted with the relief packages of the US, Japan, UK, and others wherein it is to the tune to 10-12% of GDP. In this manner, there is a more noteworthy desire that the administration would before long reveal another help package for businesses.
The Reserve Bank of India, as well, has done its bit. It has just declared a few measures in two portions. Supplementing the Government's endeavors, the pinnacle bank towards the finish of March brought down the repo rate by 75 basis points to 4.4% and injected liquidity in the financial framework to the tune of Rs 3.74 lakh crore. It likewise brought down the opposite repo by 90 bps to 4%. It likewise declared a ban of 3 months on reimbursement of all term loans, including retail advances and on advances to SMEs. With the financial development situation staying under the haze, the summit again occurred on April 17 and reported a further decrease in the opposite repo to 3.75%. It has additionally reported certain unwinding on credit classification and provisioning too.
Real estate may cure the economy
One reason that the Indian economy is attempting to accomplish a 7.5-8% sort of development is the condition of real estate. The most recent couple of years have been trying for the area as it experienced a colossal change because of Demonetization, RERA, and GST usage. The COVID-19 is further prone to hit the segment hard, with a portion of the reports recommending extraordinary negativity in regards to the part. The segment despite everything remains the second-biggest employer and is a basic machine part in India Inc, with near 300 businesses depending on it for development purposes. Along these lines, it is of most extreme significance that a few measures are declared to restore the area, which thus may hugely profit the economy.
a) One time loan rebuilding
One such measure could be builders' long-pending interest for rebuilding of existing advances for a time of a year. In the midst of the difficult situation, the deals of housing units have stayed repressed for the most recent few years. This has unfavorably affected the credit reimbursement limit of a significant portion of builders. Therefore, it would be perfect that the Government or the Reserve Bank of India reports a one-time loan rebuilding for 1 year. This would guarantee that builders would have adequate liquidity available to them. Likewise, with no defaulter tag, builders would have the option to raise extra money from different establishments. Obviously, it would help in quicker consummation of the project and would make considerable employment openings.
b) Waiver of stamp duty
With stamp obligation being probably the greatest wellspring of income, different state governments have generously climbed hover rates throughout the years. Much of the time, the hike isn't in a state of harmony with market real factors. In that capacity, stamp obligation dependent on ridiculous circle rate is a significant obstacle in the purchasing of properties. In this way, it would be apt that states defer off stamp duty for a constrained period. The move would help in the restoration of the segment.
c) Special window for HFCs/NBFCs
Banks have been hesitant to fund realty extends in the course of the most recent couple of years. Without it, the part has vigorously depended upon NBFCs and HFCs for its monetary prerequisites. But a portion of the HFCs and NBFCs are confronting a liquidity press. In the wake of the equivalent, giving a unique window of funds for HFCs/NBFCs would help them at this basic junction, yet thus would help in the recovery of the realty area too.