The next bi-monthly monetary policy review is scheduled to be announced on June 4, following the meeting of the Monetary Policy Committee (MPC) beginning Wednesday
Read more about RBI likely to retain benchmark interest rate on Friday, feel experts on Business Standard. Reserve Bank of India (RBI) is likely to retain the benchmark interest rate at the existing levels at its upcoming monetary policy review, feel experts
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Resurgent Covid: Rising infections to subdue growth
By IANS |
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Growth chart. (File Photo: IANS). Image Source: IANS News
New Delhi, April 7 : Resurgence of Covid-19 cases, along with high inflationary pressure is likely to subdue the economic recovery process, fear industry insiders.
Besides, economy watchers cite partial restrictions as well as localised lockdowns as real demand killers .
However, the shock of the initial lockdown in 2020 is not expected to be repeated this time around due to excessive liquidity, low interest rates, combined with the experience gained by India Inc in handling the situation last year.
Similarly, the expansion in e-commerce space by companies is also expected to play a crucial role during this period.
The government s decision to extend additional tax deduction of Rs 1.5 lakh on home loan interest till March 2022 and tax holidays on affordable housing projects in the Budget will boost demand for residential properties, according to real estate developers and consultants. However, builders were disappointed as the finance minister did not consider many demands, including industry/infrastructure status, single-window approval for projects, input tax credit on GST and extra allocation in stress fund. The chairman of realtors apex body CREDAI, Jaxay Shah, said this will boost overall demand for affordable housing, the fastest growing segment for the real estate sector. The proposed amendments to allow debt funding through REITs would help in attracting more investments in real estate sector, CREDAI President Satish Magar said, adding that the proposal to make dividend payments to REIT exempt from TDS would encourage retail investors to explore investment opportunities in REITs