by Mr.
Anuj Puri, JLL India
As the Narendra Modi Government completes its
first year in office, there is no dearth of bouquets and brickbats for the Na
Mo regime in the media.
On analysing the Narendra Modi government’s
electoral assurances, the actions taken so far and the respective timelines
being followed to achieve these, I would say that it is reasonably on track
with fulfilling its short-term, medium-term and long-term promises.
Importantly, the continuation of the previous
government’s policies like Land Acquisition and Rehabilitation and Resettlement
(LARR) Bill, Real Estate (Regulation and Development) Bill will have
significant impact on the real estate industry once these are passed by the
Parliament.
India’s historically opaque real estate sector
will move towards more transparency with the introduction and implementation of
these key policies.
It is worthwhile to reflect on the
grassroots-level transformation we can expect to see when:
·
Millions of home buyers in towns and cities and farmers across the
country (the latter being landowners affected by infrastructure projects) are empowered
with the clauses in the real estate regulatory bill and LARR
 |
| Anuj Puri, JLL India |
·
Investment opportunities in office spaces open up for small retail
investors thanks to REITs
·
The quality of life of millions of Indian citizens is upgraded when the proposed
100 smart and sustainable cities come to life.
·
‘Benami’ transactions, which have for the longest time been a bane of
the real estate sector, are eliminated
Let us
take a look at the progress on some of the promises Narendra Modi’s party made
in its electoral manifesto.
Specifically, we will isolate promises which have
direct bearing on enhanced governance and reinforced democratic fundamentals,
which are important for India’s development and future-readiness:
Promises On Track...!
Ø Transparency...!
Re-auctioning of coal blocks earned the
government huge revenues
Ø
Efficiency..!
Real-time
effort towards rendering the existing institutional frameworks more efficient;
a good example being the change in Food Corporation of India’s food procurement
and storage mechanisms.
Ø
Productivity & Accountability..!
Narendra
Modi has been directly involved in monitoring and raising the productivity as
well as efficiency of his ministry officials.
He is clearly bucking a chronic trend of bureaucratic
unavailability and aiming to increase public access to government officials
Ø Black
Money..!
The Black
Money Bill has given a moratorium period to bring back unaccounted money into
the system by paying normal tax.
The ongoing dialogue with the Swiss financial
authorities to disclose secret accounts of Indians abroad is reaping results.
Ø
Corruption..!
Wired
(online) transactions are now being encouraged for property transactions.
This is a major step forward for curtailing black
money in the sector.
Ø Investor
Confidence..!
Market
confidence has improved with the strengthening of the Indian equity, debt,
currency markets and equal tax regime that was promised to both domestic as well
as international investment companies.
Ø
Positioning India..!
Via a
series of international tours, the PM is helping India rid itself of its
anti-investor image and is opening up new avenues of foreign business in India,
especially under the ‘Make in India’ campaign
Ø
Decentralisation & Cooperative Governance...!
·
Gradual increase in the financial autonomy of states
·
Farmers get real-time information on Minimum Support Price through
digital channels and Kisan TV. Drastic price movements have been largely under
control.
A focus on citizen outreach programmes as well as
leveraging social media have bought people closer to the governance process.
Promises That May See Progress Soon...!
·
States with similar problems will be able to form councils under Niti
Aayog to discuss common concerns
·
Niti Aayog, along with other national agencies, will help individual
states in mobilisation of resources.
Promises That Saw Little Or No Progress...!
·
Relaxing clauses in the Land Acquisition and Rehabilitation and
Resettlement Bill (LARR), Real Estate Investment Trusts (REITs) and Foreign
Direct Investment (FDI) policies that investors find difficult to follow
·
Increased credit facilitation to start-ups
·
Initiation of employment exchange programmes with other countries
·
Obsolete laws to be scrapped or modified
·
Online dissemination of court cases for better monitoring and creation
of specialised courts to fast-track delivery of justice.
In short, the Narendra Modi Government has a
fairly balanced list of hits and misses so far. The trend does seem to lean
more towards action than inaction.
It definitely seems that Modi has every intention
of living up to the larger part of his electoral promises in the future.
I agree with Reserve Bank of India (RBI) Governor Mr. Raghuram Rajan when he says that the expectations from the new government when
it came to power last year were ‘probably unrealistic’, and that it has in fact
taken steps to create an environment for investment and is sensitive to
concerns of investors.
About the author..!
Mr. Anuj Puri is Chairman & Country Head at
JLL India
No comments:
Post a Comment