MUMBAI: Real estate is one sector the Central government is yet to look into during its various interventions since August to boost the economy, but the sluggishness in the sector has to be addressed, said Finance Minister Nirmala Sitharaman while speaking at the National Stock Exchange’s silver jubilee celebrations here on Tuesday. She said alternative funds are interested in the sector, and that the government is also working with the Reserve Bank of India on ways to revive the sector.
“Alternative funds are approaching us saying they would like to work with us, so long as a support mechanism is available for reviving the sector … The government is very keen on working with the RBI to see how best we can, where necessary, tweak existing laws to help the people who have been affected in the real estate sector,” she said.
The real estate sector has a spillover effect on very many sectors. So, its revival will not only help the affected home buyers, but also positively impact many sectors, including core industries that supply material, Sitharaman said. The finance ministry, since August, had announced various steps, including a reduction in corporate tax rates to help the economy that has been on a downhill.
Lauding NSE’s contribution in the past 25 years, Sitharaman said NSE, together with the International Financial Services Centre at Gift City in Ahmedabad, gives a picture to the world that here is an emerging market with very strong institutional strength. This institutional strength and transparency are making more foreign funds — be it pension funds or sovereign funds — come to India with enthusiasm.
“They come not just for the interest or the earnings, they come also because they have trust and faith in the way in which... you have organised yourself,” Sitharaman said.
Indian markets have become a sought-after destination over the years, but multiple taxes by way of securities transaction tax, capital gains tax, stamp duty and GST on capital market transactions are affecting the competitiveness of Indian markets compared to peers, said Vikram Limaye, managing director and chief executive officer of NSE.
“A streamlined tax structure would significantly enhance attractiveness of our markets and wider participation would enhance liquidity across securities,” Limaye said.
He also talked about simplifying the KYC process for opening demat and brokerage accounts with just a bank account and Aadhaar, on the lines of Jan Dhan Yojana.