September 16, 2019
Breakthrough in reforms for housing, exports and tourism sectors will boost economic growth : PHD Chamber
PHD Chamber of Commerce and Industry congratulates the Hon’ble Finance Minister Smt. Nirmala Sitharaman on a major breakthrough in the housing, export and tourism sector reforms. The slew of measures will not only re-fuel the economic growth but also create ease of living and ease of exports from India.
Housing, exports and tourism sectors are employment oriented sectors and reforms are expected to create massive employment opportunities for the skilled, semi skilled and unskilled work force in the country. More than Rs. 70,000 crore stimulus including stressed asset fund of Rs. 20,000 crore for for housing projects, Rs. 50,000 crore for reimbursement of taxes paid on exports and Rs. 1700 crore for higher insurance cover to exporters are very instant measures to kick start the economic growth, said the industry body.
Mr Rajeev Talwar, President, PHD Chamber of Commerce and Industry said that housing is one of the major demand crating sectors of the economy and exports are important to maintain macroeconomic stability through foreign exchange earnings, current account stability and overall balance of payments.
Measures in the housing sector such as relaxation of foreign borrowing guidelines for affordable housing, lowering of interest rate on house building advance and special window in the form of Rs 20,000 crore fund to provide last mile funding for housing projects in affordable and middle income category are very timely and progressive. These measures will not only help the real estate developers but also help home buyers to take deliveries of their homes from the stalled projects, said Mr. Talwar.
Special bonanza for government employees such as reduced interest on house building advance will create a huge demand in the housing sector, he said.
The dynamic reform measures such as new automatic refund system for exporters, new Remission of Duties or Taxes on Export Product (RoDTEP) scheme, expansion in the scope of export credit insurance scheme, use of technology to reduce the time to export or turn-around time, mega annual shopping festivals will give a big push to the sentiments of exporters and create an environment of ease of exports from India, said Mr. Talwar.
Tourism sector will also be benefitted as the government will hold mega shopping festivals by March 2020 in 4 places with a focus on gems and jewellery, handicrafts, yoga, tourism, textiles, and leather sectors. This will encourage small and medium firms, especially in handicrafts and create opportunities for traders to establish linkages with foreign buyers, said Mr. Talwar.