Budget 2015-16: Thrust on infra welcome step, says Gagan Banga

Gagan Banga, Vice Chairman & MD, Indiabulls Housing Finance

The FM has cleared the cluttered, and at times convoluted, tax regime and has ushered in a more cogent and predictable tax environment. Good infrastructure is the foundation of meaningful and sustainable GDP growth. The thrust on infrastructure in the budget is a welcome step in this direction and signals the government’s intent and understanding of the importance of this key sector. The finance minister underlined inflation management as another area of priority for the government. Not only will this aid robust economic growth, a low to moderate inflation environment will also ease populist pressures on the government. Availability of low cost capital is a key enabler for the real estate sector. The sector has a high multiplier effect on the economy and affordable housing is key to realizing the social dream of Housing for all. The tax overhaul to permit the listing of REIT will provide a much needed source of capital to a sector that is hungry for efficient funding