The domestic real estate sector will play a crucial role in keeping the country’s GDP growth over 8% and generate employment, Duravit India CFO Sanjay Goyal says. According to Goyal, the demand of building materials in the affordable segment in particular and the real sector, in general, is likely to increase in the coming years on the back of the government’s vision and proposals announced in the Union Budget 2019-20.
“The government has set the target to build and deliver 19.5 million houses by 2022. Modi government 2.0 has proposed and extended incentives such as exempting income tax for affordable projects, increasing the interest exemption for individuals by 1.5 lakh for purchase of the first house, giving the central bank regulatory powers over housing finance companies, model tenancy law finalisation and circulation to state governments. These measures will boost the growth of real estate in the long term and will contribute to keeping GDP growth over 8% and generate employment. Eventually, this will lead to a $5 trillion economy by 2024,” he says.
