By Accommodation Times News Service
Blasting the status quo in RBI’s monetary policy review as “arbitrary” and “anti-growth”, developers apex body CREDAI has called for opening a dialogue with all stake holders before taking policy decisions that impact a cross section.
“It is sad and unfortunate to see RBI taking such a stubborn stand, despite economic realities of the day,” said CREDAI national president.
“We wonder if the RBI policy of causing liquidity crunch leading to short supply and resultant price rise is good for the economy or increasing liquidity and pushing supply to bring prices under control is better,”
The RBI and the government talk a lot about inclusive growth. RBI in particular has been stressing on financial inclusion. It is in this context that all concerned must start the process of consultations with all stake holders, the entire industry and trade, including the real estate developers’ representatives while reviewing the monetary policy, he said.
“We at CREDAI have been pleading for funds being made available to developers as well as home buyers at affordable and reasonable rates of interest, but somehow the RBI does not seem to realize the need for encouraging the real estate sector,”
He recalled that the finance ministry has been asking commercial banks to lend money to developers to help complete projects that are standstill for want of funds. “This is a positive signal, but we are saddened to see the RBI’s unchanged attitude,” he said.
As developers, dealing with every section of the industry for our projects, are well versed with the ground realities and we have been time and again pointing out that RBI must have a policy that encourages production and supply which ultimately results in price check.
“We hope that the RBI and other policy makers will soon realize the fact that the capital intensive real estate and construction industry is the largest employer after agriculture and contributes handsomely to GDP. We cannot expect economic growth without pushing the real estate sector,” he added