We are delighted with the Honourable Finance Minister’s announcement this morning on restructuring the corporate tax regime. It is a milestone effort towards kick-starting the Indian economy and boost production. This substantial direct tax reduction will allow more liquidity for the corporates that are currently assuming drastic measures to protect their profitability. This reduction in corporate taxes will help organizations to grow and help boost employment restoring the balance in our economy. A stronger economy will, therefore, lead to higher consumption leading to GDP growth. As it is always the case, a high GDP growth leads to stronger end-user buying pattern and general financial confidence of making long-term commitments.
These measures will complement the monetary policy measures taken by the RBI in increasing liquidity and consumer spending. As a trickle-down effect of this, we should be hoping for a revival for the real estate sector as well. This boost will certainly accelerate demand for commercial spaces, but we understand that the financial stability expected will propel growth for the beleaguered residential market in the near future.