Union Budget 2014-15 Reactions: Venkatesh Gopalkrishnan, EVP & CIO, Shapoorji Pallonji Real Estate
Overall a very well balanced budget keeping in minds growth, deficit and inflation. Meeting the fiscal deficit targets could be challenge, tax reforms and rationalization, driven by realizations led by higher growth will help achieve the deficit targets. Budget with propel GDP growth which will in turn spur real estate demand over the medium term. Specific measures relating to reduction in area for FDI and REIT’s will increase liquidity in the sector and as such reduce the dependence on the banking system. With the current incentives in the budget, Affordable housing will become even more attractive from a developer’s perspective.