World Bank Ease of Doing Business Ranking Announcement 2019 by Rakesh Reddy Director Aparna Construction
India has enacted many policy interventions over the past few years, especially in real estate, which undoubtedly has a far-reaching impact on India’s overall economic performance. These transformative reforms have resulted in India improving 14 places to rank 63rd in the World Bank Ease of Doing Business ranking.
The Real Estate Regulatory Act (RERA) has revived consumer confidence and laid the foundation for massive growth. RERA has the potential to be the most significant among these reforms. The overall goal of RERA is to protect the interests of homebuyers in an efficient and transparent manner. It introduces a unified process and formality to the real estate industry that has long been fragmented and unregulated. RERA is a key driver in the revival of the real estate, and subsequently the economy at large.
The reduction in GST on under-construction properties and affordable housing have also had positive implications for the sector. This has incentivised sales of under-construction properties and spurred demand for new projects. Lowering the GST for affordable housing projects, combined with the granting of infrastructure status, will provide people of low-income groups with homes and bring property ownership within reach of a wider audience.
The real estate sector is a significant contributor to India’s growth and is its second-largest employing sector. While the sector has benefited greatly from the transparency and accessibility provided by these reforms, we still need to streamline processes and capitalise on growing momentum. A single window clearance mechanism and infrastructure status for the entire real estate sector would accelerate overall growth.
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