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Construction : Web Exclusive | February 2018 | Source : CW-India

Economic Survey 2018 presents interesting numbers. Find out!

Says Sunil Aggarwal, Associate Dean and Director, RICS SBE, on the Economic Survey 2018:
 
“The economic survey of 2018 presents some interesting numbers. GDP growth looks good with the survey estimating growth of 7-7.5 per cent for FY2019 as against growth of 6.75 per cent in FY2018. Clearly, the economy has recovered from the double whammy of demonetisation and GST and is on the road to recovery. Government reforms of the last two years are expected to drive growth. It is good to note that the negative impact of GST and demonetisation have dissipated. On the contrary, government reforms such as GST and demonetisation have formalised the economy as is evident in the 50 per cent increase in the number of indirect tax payers. GST tax collections are on track for the first eight months since GST implementation. This makes the case stronger for inclusion of the real estate sector under GST, provided the GST rate is rationalised at 12 per cent. India added 18 lakh income tax filers since November 2016, which puts to rest all debates on the efficacy of demonetisation in formalising the economy. Finance Minister has also said that he wants to bring real estate fully under GST. It will not only help in ease of doing business but also save buyers of real estate from extra burden of stamp duty. The good news for the real estate sector is the fact that India jumped 30 places in the World Bank’s Ease of Doing Business ranking and is now among the top 100 for the first time. We hope the positive impact of this trickles down to the real estate sector, which struggles with obtaining project approvals on time. The economic survey also estimates that India’s urban population will reach 600 million by 2031, which should be a cause for concern for urban planners. The increase in urban population will have to be managed in such a way that it does not place stress on the existing city infrastructure. With an increase in urban population, the demand for basic services such as water, transportation, sewage treatment, low income housing are expected to increase five to seven fold in cities. There is a fear that the existing urban infrastructure will not be able to meet the demands of a growing population. RICS has pointed out many times that India needs to increase its investment in cities to address the urbanisation phenomenon. Meeting the needs of urbanisation will require innovative models of urban development.”


 
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