Budget 2020 can create lot of jobs if FM Nirmala Sitharaman helps this one sector, says Keki Mistry

FE Online
·2-min read

Union Budget 2020: With just three days left for Finance Minister Nirmala Sitharaman to release Budget 2020, suggestions are pouring in for boosting the economy. The latest suggestions come from Keki Mistry, Vice-chairman and CEO of HDFC, who said that the BJP government can create a lot of jobs if it helps one sector — housing and real estate. He added that the government can also look into three other measures to fuel economy. "There should be four broad themes of the budget. The first should revolve around job creation. Housing is clearly one of the biggest job creators in the economy... the second area of focus should be capital market reforms," he said in an interview to CNBC TV-18, adding that realignment of personal tax rates and focusing on rural economy must be among core agendas too.

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Housing sector woes

Talking specifically about the concerns of the housing and real estate sectors, Keki Mistry said that there are two issues plaguing the sector. Stuck projects particularly in the big cities like Mumbai, Delhi, Bangalore and Chennai are not getting last-mile funding and are at 70-80% completion. "We have to find a mechanism to ensure that these projects get the funding required so that these projects get completed," he told the news channel. Additionally, the government needs to revive demand in the housing sector, he said.

Finance Minister Nirmala Sitharaman will present the second budget of the Narendra Modi-led BJP government's second tenure in the country on 1st February 2020. The upcoming budget comes at a crucial point as the economy is reeling under a slowdown for close to a year now and India faces some other challenges as well — from slumping demand to stagnant private investment. It is highly anticipated that reviving growth, boosting demand and spurring consumption will be the topmost priority of the government in Saturday's budget.