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Mid-term report card: Mixed bag of hits, misses for Modi
On November 26, 2016, the Modi government completed half term. Like individuals, governments across the world, can be judged on the twin parameters of intent and action. This half term report card for the government seeks to dig deep into that set of intent/dreams and discover how close or far they are to being realised.
The Indian economy looks comfortable with growth for the full year FY2016-17 expected to be 7.1% as per the latest government estimates and on the inflation front too, the situation remains fairly in check. With the recent demonetisation of Rs 1,000 and 500 currency notes in India, consumption growth may have dampened a bit, but the intent for reforms has been clearly emphasised.
On the real estate matrix, this report has rated the government’s performance on certain key parameters like the progress on the GST bill, the Real Estate Regulatory Bill, LARR, Affordable Housing, Smart Cities and several others. It is a mixed bag, with some parameters achieving higher success on the ground, while others are high only in terms of intent.
While there is a continued political will towards real estate reforms, there are very real challenges. Whether they be in the form of resistance from state governments, differences in interpretation of the law or the sheer volume of the task undertaken, the report presents the challenges and achievements on a scorecard with a definitive logic.
It also provides a brief summary of the real estate sector’s performance during the Modi rule, encompassing the residential, retail, commercial, hospitality and warehousing sectors. Undoubtedly abundant progress has been made on parameters like REITs, Investor confidence has grown, GST is set to be a reality, and there are huge hopes for a more transparent, better regulated real estate market. We need to see the dots defining each of these parameters drawn faster, in cohesive, full bloom patterns, for the promised dreams to be fulfilled.