8, Aug 2024
Developers appreciate RBI’s inflation curb intent behind repo rate maintenance
The Reserve Bank of India’s (RBI) decision to keep the repo rate unchanged at 6.5% has sent a mixed signal to the real estate sector. On one hand, the move aims to curb retail inflation and maintain economic stability, but on the other hand, it may impact homebuyers’ affordability and slow down the momentum in the housing market. As the industry reacts to the news, we explore the implications of the RBI’s decision on the real estate sector and what it means for developers, investors, and homebuyers.
Neeraj K Mishra, Executive Director, Ganga Realty, stated, “While some experts have suggested a possible reduction in the repo rate, which would benefit the real estate and related industries, we appreciate the Reserve Bank of India’s (RBI) cautious approach to monetary policy. The decision to maintain the repo rate at 6.5% aims to address retail inflation. Despite this, the luxury housing market continues to thrive. However, prospective buyers in the affordable housing segment may delay their purchasing decisions, awaiting a potential reduction in repo rates to make homeownership more accessible.”
Saransh Trehan, Managing Director, Trehan Group, said, “The RBI’s decision to maintain the repo rate aligns with its goals of curbing retail inflation and achieving a 7.2% GDP growth rate for FY25. We commend the RBI’s balanced approach and hope it yields positive results. In the real estate sector, demand has surged in recent years, with luxury markets experiencing a significant upswing despite consistent repo rates. While high-end buyers continue to invest in real estate, mid-range and affordable homebuyers may pause their purchasing decisions due to high mortgage rates resulting from the unchanged repo rates.”
Dushyant Singh, Director, Orion One 32, stated, “The housing market is expected to experience broad-based growth across all segments. Although a reduction in repo rates would have been welcome, we understand the RBI’s decision to maintain rates to address retail inflation. By keeping interest rates stable, the central bank aims to promote stability, encourage competitive home loan offerings, and revitalize the housing market. This move is expected to boost the real estate sector, benefiting both developers and homebuyers. While the decision aims to stimulate demand, it also acknowledges the need for cautious progress amid inflationary pressures. This measured approach to borrowing rates prioritizes affordability and sustainability, supporting potential homebuyers and maintaining momentum in the market.”
Shiven Vikram Bhatia, Executive Director, Splendor Group, affirmed, “The RBI’s decision to hold the repo rate steady at 6.5% strikes a balance between managing inflation and supporting growth. While we had hoped for a rate cut to boost affordability, we recognize the central bank’s prudent approach. The stable interest rate environment will continue to drive demand in the housing market, particularly in the mid-to-luxury segments. We expect the market to remain resilient, with homebuyers taking advantage of competitive home loan offerings and stable prices. As a developer, we will focus on delivering quality projects that meet the evolving needs of homebuyers, capitalizing on the sustained demand and positive market sentiment.”
The RBI’s decision to hold the repo rate steady has brought a sense of caution to the real estate market. While the move may not have provided the immediate boost that the sector was hoping for, it has ensured stability and paved the way for sustained growth. As developers and homebuyers adapt to the new reality, the focus will shift to competitive home loan offerings, innovative marketing strategies, and quality project deliveries. With the market expected to remain resilient, the RBI’s decision may ultimately prove to be a blessing in disguise for the real estate sector, balancing growth with prudence and setting the stage for long-term success.
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- By Rabindra
8, Aug 2024
The Call of the Mirror art exhibition curated by Rohit J Kapoor
Viraya Eko, a pioneering art initiative founded by artist and curator Rohit J Kapoor,showcases its latest exhibition, “The Call of the Mirror,” set to open at the historic Travancore Palace, 10A Kasturba Gandhi Marg, New Delhi. The exhibition will be previewed on August 10th,2024 only by invite and open to the public on August 11th, 2024.
The exhibition “The Call of the Mirror” showcases diverse artists, each bringing unique perspectives. Asha Thadani, through her lens, sparks conversations on caste, power hierarchies, child labor, abuse, and the resilience of the human spirit. Nominated for the Henri Cartier Bresson Award in 2015, her works have been exhibited at Christie’s Auction House and the Albert Kahn Museum, Paris. Suvajit Mondal, a New Delhi-based ceramic artist, explores the relationship between nature and human intervention. His works, awarded the 56th National Award at Lalit Kala Academy in 2015, have been exhibited in group shows across India and in notable exhibitions with the Raza Foundation and Gallery Art Heritage, New Delhi.
Maulik Oza, a self-taught ceramist, integrates ceramics within architectural and interior environments. His works, exhibited in several exhibitions, notably with 079 Stories in Ahmedabad and the Raza Foundation in New Delhi, showcase his innovative approach. Also, Nitush and Aroosh, self-taught designers and artists, create sculptural furniture and objects, transforming stainless steel into unique pieces inspired by Indian metal craftsmanship. Their portfolio includes over a thousand projects.
Oliver Sinclair began his career with Richard Avedon and later worked with Nick Knight. His current focus on portrait and street photography captures the essence of his subjects. Nirvair Rai Singh, a Mumbai-based photographer and filmmaker, uses his lens to explore socio-political issues in South Asia. His work, including projects like ‘Landless Kings’ and ‘Memory of Land,’ has been exhibited in New Delhi and the UK. He is currently working on a documentary for Netflix, India and has been awarded by the National Geography.
Sergey Vinogradov, a member of the Union of Photo Artists, Russia, focuses on portrait photography with surrealist elements. His works deconstruct traditional masculinity, revealing emotional complexities. His work has been featured in galleries across Europe and the U.S., and publications like Vogue and Iconic Artist. Nandini Jhabua, from the Royal family of Jhabua, has been a patron of Gond Art Projects for over a decade, promoting tribal art and culture globally. Kopal Seth, based in Khurai, M.P., with an MFA from the Rhode Island School of Design, has exhibited her work in India, China, and the U.S. Her portfolio addresses themes like overpopulation, environmental chaos, and human conflicts.
Rohit J Kapoor’s multidisciplinary art integrates emotional and analytical dialogues, often alternating between monastic austerity and baroque high camp. He has curated and exhibited several dialogue-based art projects and fundraisers since 2016. Khalid Amin, from Ajrakhpur, Gujarat, combines traditional block printing with innovative techniques like overprinting and painting on fabric. His work has been exhibited in several shows, and his piece ‘Haji Ali’ is part of the Victoria and Albert Museum’s permanent collection.
Rutvik’s art reflects his connection to nature and the Gir forests. His works, whether sculpture or drawing, often use rural landscapes and animals to critique modern life’s lack of introspection. He has exhibited in several shows since 2018. Shambu Dayal, a Gond artist from Madhya Pradesh, has developed a unique style over 35 years, blending traditional elements with folklore and mysticism. He has received the state-level award of Madhya Pradesh in 2000. Khulem Tennyson (Lulu Kayheich), a contemporary performance artist, has crafted nonverbal ballad dance films and experimental performances. He showcased his work at the Kochi Muziris Biennale and won the Karthika Nair Best Dancer Award at the VI Edition of PECDA in 2024.
Lastly, Narendra Jatav, an artist from Madhya Pradesh, creates captivating works using charcoal, blending sacred geometry and abstraction. His work has been featured in several national and international exhibitions.
“The Call of the Mirror” is beyond the boundaries of artistic vision and individual perceptions, exploring the intersection where they merge. This exhibition features a diverse array of artworks that encourage viewers to engage with art on a personal level, becoming co-creators in the process. The artists’ works urge viewers to seek out art in the world, drawing them into its spectrum of influence and facilitating self-understanding through the perceptions of others.
Viraya Eko aims to promote the artistic visions of emerging artists, artisans, and creatives who integrate cultural legacy into their creative processes. This initiative includes issues surrounding contemporary times and explores impactful creative narratives that are both catalytic and thought-provoking.
8, Aug 2024
CII Karnataka Annual Energy Transition Conference 2024
Bengaluru, 08 August 2024: CII Karnataka organized annual Energy Transition Conference “Driving Sustainability: Renewables, Green Hydrogen and Electric Mobility” today at Bengaluru. Addressing the inaugural session Mr Gaurav Gupta, IAS, Additional Chief Secretary, Energy Department, Water Resources Department & Managing Director, KPCL, Government of Karnataka, remarked, “Karnataka is leading the way in renewable energy, with 65% of electric energy capacity coming from renewable sources. As a hub for renewable energy, transmission, and investment, we are also pioneering in green hydrogen production with a target of 3 MMTPA and advancing electric mobility to create 1.5 lakh jobs. Our goal is to reduce the cost of green hydrogen production from $5 per kg to $1 per kg, demonstrating our commitment to sustainable and innovative energy solutions.”
Mr Lalit Bohra, Joint Secretary, Ministry of New & Renewable Energy, Government of India, stated, “Providing electricity at a low rate is essential as power demand grows at 8-10%. India stands 4th globally in renewable energy installations, having surpassed 85GW from solar and 46GW from wind. The government has waived inter-state transmission charges, and for the first time, Karnataka has introduced Distributed Renewable Purchase Obligations (RPO). Achieving the 200GW milestone from renewables without fossil fuels and aiming for 500GW by 2030, along with 55GW solar manufacturing capacity, highlights our commitment to a sustainable and energy-secure future.”
“Energy plays a critical role in our lives, offering the opportunity to reduce our carbon footprint, create jobs, and enhance capacity said Ms Gunjan Krishna, IAS Commissioner for Industrial Development and Director, Department of Industries & Commerce, Government of Karnataka. Ms Krishna emphasized on “The transition of energy has two crucial aspects i.e. moving towards renewable sources and decarbonization aiming for 50% installed capacity of renewable energy and to attain net zero by 2070. Achieving our targets hinges on robust policies that support energy transition, increase renewable energy production, promote EV transportation, reduce industrial heating emissions through green hydrogen, and foster green buildings and manufacturing processes. Innovation and technology in the renewable energy sector are vital. We need smarter and greener grids, micro distribution systems, and just transitions. Karnataka’s industrial policy will emphasize green processes in manufacturing to align with these objectives.”
At CII Karnataka, we constantly endeavor to contribute to sustainable economic development. However, to achieve this target, we need to address one of our time’s most pressing topics: climate change and energy security. To create a sustainable energy future, we must develop a strong ecosystem with an efficient and judicious utilization of renewables, green hydrogen, electric mobility and well supported by a robust grid network are prerequisites for a seamless transition. The same is only possible through strategic collaboration and discussion among industry leaders and visionaries. An in-depth dialogue on energy transition will go a long way in making Karnataka a key player in the country’s net zero journey said Mr N Venu, Chairman, CII Karnataka State Council 2024-25 & MD & CEO – India & South Asia, Hitachi Energy.
CII Karnataka whitepaper on Energy Transition in MSMEs was released emphasizing the shift from fossil fuels to renewable energy sources for sustainable economic growth. MSMEs, vital to Karnataka’s economy, face both opportunities and challenges in this transition. Key drivers include supportive policies, economic incentives, technological advancements, and environmental considerations. Opportunities lie in adopting renewable technologies, improving energy efficiency, and accessing green finance, while challenges include high initial costs, limited financing, and technical expertise gaps. Addressing these through enhanced policy support, innovation partnerships, and financial products will be crucial for MSMEs to contribute to Karnataka’s sustainability goals and improve competitiveness.
Energy transition is an inevitable progression towards our target of Net Zero and the government of India is keen to push this by giving right policy support and impetus for the renewable energy industry. However we also need to focus on the infrastructure supporting the clean energy, including transmission and evacuation network ahead in time, which currently lags behind the generation said Mr Shivanand Nimbargi, Co-Convenor, CII Karnataka Energy Transition Panel 2024-25 & Managing Director, Ayana Power
“Globally, India ranks as the 4th largest in renewable energy (RE) installed capacity with over 200 GW installed,” said Mr KP Rudrappiah Managing Director, Karnataka Renewable Energy Development Ltd (KREDL), Government of Karnataka. “Karnataka is among the top 5 states in RE installation, holding the 3rd position in both solar and wind energy. The state has made significant strides in RE capacities, supported by a favorable policy environment. The Energy Conservation (EC) and Energy Efficiency (EE) policy aims to conserve 744 million kWh of electricity, avoiding the addition of 454 MW of fossil fuel-based generation capacity and reducing CO2 emissions by 610,080 tonnes. In the 2024-25 budget, the Government of Karnataka announced the implementation of 40,000 off-grid solar pumps, increasing the state subsidy share from 30% to 50% to encourage renewable energy and boost farmer income.
“Energy transition requires a holistic approach, encompassing generation, transmission, storage, and consumption. This transformation demands collaborative innovation in technology and digitalization to ensure efficiency and effectiveness,” said Mr Akilur Rahman, Convenor of CII Karnataka Energy Transition Panel 2024-25 and Chief Technology Officer at Hitachi Energy.
The conference discussed critical topics including Renewable Energy Generation, the Energy Transition Grid for efficient Energy Evacuation and Transmission, Integration of Renewables to achieve Net Zero Emissions, and the role of Electrification and Digitalization in advancing these goals. Leading industries and institutions including Hitachi Energy; Ayana Power; Greaves Electric Mobility; Elgi Equipments Ltd; O2 Power; Dexler Energy shared and showcased their insights which was attended by over 100 industry CXO’s and stakeholders across sectors.
8, Aug 2024
Chola MS and Mahindra Finance join hands to offer motor and other non-life insurance solutions
New Delhi, 8th August, 2024: Chola MS General Insurance, a joint venture between the Murugappa Group and Mitsui Sumitomo Insurance Company Limited of Japan, has announced a strategic partnership with Mahindra Finance, one of India’s leading Non-Banking Finance Companies. This collaboration will provide motor and other non-life insurance solutions to over 10 million customers of Mahindra Finance.
Leveraging Mahindra Finance’s extensive distribution network across India, Chola MS plans to enrich its general insurance offerings with customized digital solutions. These customer-centric solutions are designed to provide long-term financial protection to customers and their families. Both organizations are committed to delivering excellence through innovation and consistency catering to the diverse needs of the customers.
V. Suryanarayanan, MD of Chola MS, stated, “This partnership with MMFSL will further strengthen our distribution network, unlocking growth opportunities through extensive reach. With our wide presence across 26 states, encompassing 600+ touchpoints and a diverse range of products including motor, home, health, personal accident, fire and more, we can cater to various customer segments across India.”
Raul Rebello, Managing Director & CEO, Mahindra Finance, said: “We are pleased to announce our strategic collaboration with Chola MS General Insurance to offer customized motor and other non-life insurance solutions to our customers. This partnership is yet another step in enabling a personalized customer experience while reaffirming our commitment towards being a responsible financial solution partner to Emerging India”.
8, Aug 2024
H&M and Bal Raksha Bharat Launch Tikau Fashion for Circular Economy in Bengaluru
Bengaluru, 8th August 2024: In response to Bengaluru’s mounting waste management challenges, H&M Hennes & Mauritz Retail Pvt. Ltd., H&M Services and Bal Raksha Bharat (also known as Save the Children India) proudly announce the launch of Tikau Fashion, a pioneering circular economy project designed to revolutionize waste management and promote sustainable practices in the city.
The project will harness the creative potential of Bengaluru’s youth to tackle both waste management and unemployment through practical, circular economy solutions. Central to this initiative is the recycling and upcycling of old clothes into new, trendy fashion items and other products such as bags, rugs, and quilts.
This project will build on the successes of the Youth Innovation and Action Lab (YIAL), which has already demonstrated its effectiveness in fostering youth-led innovation across multiple states. By integrating technology and providing ongoing mentorship, Tikau Fashion will not only create job opportunities but also drive significant environmental benefits.
This effort not only addresses the waste generated by the textile industry but also promotes awareness about sustainable fashion practices.
Key Features of the Tikau Fashion Initiative
Waste Reduction: Turning textile waste into high-quality, new products, thereby minimizing the environmental footprint of the fashion industry.
Youth Empowerment: Engaging young people in the creation of eco-friendly products while providing them with valuable skills in design, entrepreneurship, and sustainability.
Community Education: Raising awareness about the importance of responsible waste management and sustainable fashion choices.
Ms Yanira Ramirez, Country Sales Manager for H&M Hennes & Mauritz Retail Private Limited shared “At H&M, we firmly believe in the transformative power of collaboration to drive positive change.This initiative by Bal Raksha Bharat, exemplifies our shared dedication to sustainability and community empowerment. By transforming textile waste into eco-friendly products, this initiative addresses Bengaluru’s waste management challenges while creating valuable opportunities for local youth. This project aligns seamlessly with our global sustainability goals, showcasing how innovative circular economy solutions can make a lasting environmental and social impact. We are thrilled to see Tikau Fashion inspire a new generation of conscious consumers while fostering a more resilient and inclusive future for all.”
Speaking on the occasion, Sudarshan Suchi, CEO, Bal Raksha Bharat said, “We are thrilled to launch Tikau Fashion in partnership with H&M, marking a significant step towards transforming waste management practices in Bengaluru. This initiative embodies our commitment to sustainability and youth empowerment. By integrating circular economy principles, we are not only addressing the pressing issue of textile waste but also providing valuable skills and opportunities to the next generation. Through Tikau Fashion, we aim to create a positive environmental impact while fostering economic growth and innovation among marginalized youth. Together, we can build a greener and more inclusive future.”
As Bengaluru grapples with escalating solid waste issues exacerbated by rapid urbanization and insufficient infrastructure, the need for innovative solutions has never been more critical. Current waste management strategies, including those under programs like Swachh Bharat Abhiyan, have made strides. To accentuate the government’s efforts and accelerate waste segregation, proper disposal, and an advanced technology integration, Bal Raksha Bharat and H&M have stepped up to address the pressing need for community education.
Tikau Fashion aims to address these challenges by embracing the principles of a circular economy—a sustainable model that focuses on minimizing waste and maximizing resource use. Unlike traditional linear models, the circular economy promotes recycling, reuse, and remanufacturing, ensuring that products are designed to be easily repaired, upgraded, or disassembled. This innovative approach not only reduces environmental impact but also fosters economic growth and sustainability.
8, Aug 2024
CII MP Hosts Interaction with Madhya Pradesh MPs in New Delhi
New Delhi, 8th August 2024: CII Madhya Pradesh organized an interaction with the Hon’ble Members of Parliament from Madhya Pradesh in New Delhi. The interaction sought to provide a platform to discuss the avenues of collaboration between industries and Government.
The meeting was attended by the following members of Parliament
1. Mr Ganesh Singh, Satna,
2. Mr Shankar Lalwani, Indore,
3. Mr Ashish Dubey, Jabalpur
4. Mr Sudhir Gupta, Mandsaur
5. Mr Bharat Singh Kushwaha, Gwalior
6. Smt Sandhya Rai, Bhind
7. Dr Rajesh Mishra, Sidhi
8. Smt Bharti Pardhi, Balaghat
9. Mr Shivmangal Singh Tomar, Morena
10. Mr Vivek Bunty Sahu, Chhindwara
11. Smt Maya Narolia, Rajysa Sabha
12. Smt Lata Wankhede, Sagar
The meeting entailed a detailed discussion on the present scenario of Madhya Pradesh and provided an opportunity to discuss the interventions required at central and state level to ensure the all-around development of the State. Members from CII Madhya Pradesh and members of Parliament discussed the key initiatives that can help in facilitating skill development of youth, generating employment opportunities, improving healthcare facilities & delivery, harnessing the sectoral strength of Madhya Pradesh. The meeting was moderated by Mr Ashish Vaishya, Chairman, CII Madhya Pradesh State Council.
Key Takeaways of the Meeting:
The meeting involved a detailed and in-depth discussion on the current situation of Madhya Pradesh, providing a crucial opportunity to identify the necessary interventions at the central and state levels to ensure the overall development of the state. The main topics discussed included the following aspects:
1. Youth Skill Development:
The discussion focused on initiating new and advanced training programs in collaboration with industries. Emphasis was also placed on establishing and facilitating the operation of skill development centers in both rural and urban areas.
2. Employment Opportunities:
The meeting identified new employment opportunities in various sectors. Additionally, plans to create jobs in partnership with local industries were considered. Special employment programs for women and the differently-abled were also key focus areas.
3. Healthcare Facilities and Delivery:
Improving the availability and quality of healthcare services in rural and remote areas was a major point of discussion. Expanding the reach of healthcare services through telemedicine and mobile clinics was highlighted. The use of digital technologies in healthcare was also emphasized.
4. Leveraging the Regional Strengths of Madhya Pradesh:
The discussion highlighted leveraging the state’s unique strengths in agriculture, tourism, and industries. Special plans for promoting organic farming and tourism were considered. Efforts to gain national and international recognition for local crafts and arts were also discussed.
5. Enhancing the Agri, Food Processing & Dairy Sectors of MP:
The discussions focused on harnessing the potential of the agriculture sector of Madhya Pradesh and build upon the same to boost the processing of agri & dairy produce.
6. Empowering FPOs & Self-Help Groups:
The empowerment of Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs) will catalyze the growth of the cottage industry, ensuring sustainable development and economic resilience. And hence the discussions revolved around necessary interventions.
Quotes:
The meeting with members of the Parliament will help us plan and execute the tangible action plans to foster a sustained and continuous growth of Madhya Pradesh. – Mr Ashish Vaishya, Chairman, CII MP
The interaction provided us with fresh perspective and has opened new avenues of collaboration to make Madhya Pradesh a “Shreshtha” Pradesh. – Mr Siddharth Sethi, Vice Chairman, CII MP
The discussions held today will pave a way for more focused and strategic partnerships to ensure inclusive and sustainable growth of Madhya Pradesh – Mr Akshat Chordia, Chairman, CII Malwa zone
8, Aug 2024
RBI MPC Holds Rates Steady Amid Economic Uncertainties
In its latest meeting, the Reserve Bank of India’s Monetary Policy Committee (MPC) opted to maintain the status quo on key policy rates. The repo rate, at which the RBI lends to commercial banks, remains unchanged, as does the reverse repo rate, which stands as the rate at which banks park excess funds with the central bank. This decision comes amid a backdrop of carefully balanced considerations around inflationary pressures, global economic conditions, and domestic growth dynamics. The MPC acknowledged the complex interplay of factors affecting inflation, including elevated global commodity prices and domestic supply-side constraints.
Looking forward, the MPC reaffirmed its commitment to supporting economic recovery while ensuring price stability. The monetary policy stance remains accommodative, signaling a willingness to sustain adequate liquidity and conducive financial conditions. The committee’s assessment underscored the importance of maintaining financial stability amidst ongoing uncertainties, emphasizing vigilance and proactive measures to mitigate risks. As India navigates through evolving economic challenges, the decisions taken by the MPC aim to foster resilience and facilitate a sustainable path to recovery.
Comments By Industry Experts:
Mr. Samir Jasuja, Founder & CEO of data analytics firm PropEquity
“The Reserve Bank’s decision should be seen in the context of inflation-growth dynamics and the ongoing geopolitical crisis.
Any rate hike would have halted the real estate sales momentum which in the past few years have been on an upwards trajectory.
Going forward, a reduction in the benchmark interest rate will go a long way in providing a further boost to the real estate sector, a major segment of the economy“.
Mr. Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited
We welcome the Reserve Bank of India’s (RBI) decision to keep the policy rate unchanged to maintain economic growth and keep inflation under control. This decision fosters a stable economic environment, which is crucial for sustained development.
We believe that stable interest rates are particularly beneficial for the real estate sector. When interest rates remain steady, home buyers can plan their purchases without the uncertainty of potential rate hikes. The cost of borrowings too remains stable, thus, the cost of construction.
In the forthcoming RBI Monetary Policy, we hope the positive trend continues and expect favorable news for homebuyers specially in the Affordable and middle class housing.
Mr. Mohit Jain, Managing Director, Krisumi Corporation
“While a rate cut would have been an ideal scenario to propel economic growth across industries including real estate, maintaining the status quo will help prevent borrowing cost from rising, enable affordability, propel the residential demand and boost the overall economy. The RBI’s endeavour to maintain a stable policy environment will benefit not just homebuyers but also real estate developers who have the opportunity to innovate and cash in on the buoyancy.”
Siddharth Karnawat, Co-Founder, Blue Sky Capital
RBI keeps rate unchanged at 6.5% for 9 consecutive policies and that was expected on the sidelines of global uncertainty we are into. With FY25 GDP growth rate estimated at 7.2% and CPI inflation estimate at 4.5% maintained for FY25 but to be noted that concern over stubborn food inflation still exists which seems clearly the focus of RBI. Already big banks results showing deposits side pressure and concern over retail loans and RBI was yet again upfront on clearly highlighting that. RBI too indicated money going into markets due to attractive returns and hence banks are facing funding issues.It would be needless to say that currently RBI feels financial market is robust but is proactive to call out as these issues should not become a concern in future. As the focus of RBI always Digital lending RBI proposes to create a public depository of digital lending apps. What is also a good move on ease of doing business is Cheque clearance now will be in hours rather than a couple of days.
To sum up broadly in line with the street’s expectations but with a clear focus on food inflation and not in hurry to change rates.
Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara private limited
The retention of the status quo in the repo rate at 6.5% by the RBI for the ninth consecutive time sends an unequivocal signal about India’s resilient economy and a central bank committed to sustainable growth. That continuity automatically impacts personal financial planning. If one has variable rate loans, this stable interest rate environment provides the opportunity for accelerated repayment strategies. Consider this—an additional payment of even 5% of the EMI towards the principal of a ₹50 lakh home loan at 8.5% interest can cut the tenure by almost 2 years, saving more than ₹5 lakhs in interest.
On the investment front, even though interest rates for FDs might remain flat, this is the time to consider a systematic investment plan in equity mutual funds. With Sensex and Nifty touching all-time highs and the RBI forecasting robust GDP growth, disciplined investments in equities may deliver significant returns in the long run.
So, as depicted in the past records data of SIPs, the return on diversified equity funds on average resulting from SIP investments is approximately ranging within 12-15 % in a 10-year period. Another positive aspect realized by a stable interest rate is that this is a good time to seek an insurance review especially on term life insurance where rates are expected to remain fairly priced for the future.
Manoj Goyal, Director, Forteasia realty pvt ltd.
The move by the RBI to retain the repo rate at 6.5% for the ninth time in a row brings stability to the milieu of real estate financing, helping homebuyers in a manner that keeps interest rates on home loans steady at an average of 8.5%-9.5% for most banks at the moment. For a regular house loan of ₹50 lakhs for 20 years, this will come to an EMI of about ₹44,000 to ₹47,000, depending on the precise interest rate. With the unchanged repo rate and a GDP growth estimate at 7.2%, things have augured well for FY25 in terms of real estate investment, according to the RBI. History suggests that any period where interest rates are stable would normally comprise constant growth in property values. For instance, during the last protracted period of rate stability from 2015 to 2018, the House Price Index showed an average annual growth of 5.8%. This opens up prospects for prospective homebuyers to take balanced decisions without worrying about fluctuating EMIs.
LC Mittal, Director, Motia Group
The hold of the repo rate at 6.5% for the ninth time in a row bodes well with huge implications for the affordable housing sector. With home loan rates steady, the affordability index remains positive for first-time homebuyers. The share of the average home loan payment to income has improved from a high of 61% in FY14 to 43% in FY23, largely due to interest rate stability and rising incomes. This obviously would continue with the present rate stability. While the government’s affordable housing push and a supportive stance by the RBI would have given a fillip surely to this segment, it is quite probably because of price hikes that volumes have not grown so much. Affordable housing—units priced below ₹40 lakhs—accounted for 30% of new launches in the top seven cities in 2023. A status-quo repo rate, along with various government incentives like PMAY, will infuse continuous growth into the affordable housing sector and drive expansion in the overall real estate sector in step with the RBI’s projected 7.2% GDP growth for FY25.
Anurag Goel, Director at Goel Ganga Developments
The nuanced impact of the decision by the Reserve Bank of India to retain the repo rate at 6.5% for the ninth consecutive time is this: while residential real estate benefits directly from stable home loan rates, commercial real estate benefits on account of the overall economic stability that this decision signals. With the RBI retaining its GDP growth estimate at 7.2% for FY25, we can look forward to sustained demand for office spaces, especially in IT hubs and emerging business districts. Office space leasing in the top 8 cities increased by 15% YoY in 2023 to 38.2 mn sq ft. A stable rate environment is likely to trigger more long-term leases and property acquisitions by businesses. What is more, catalysed by the pandemic, for e-commerce the boom goes uninterrupted; hence, demand continues to surge for warehousing and logistics spaces, having grown by 47 percent YoY in 2023 to 51.1 mn sq ft. This trend will be accelerated further as both financing costs and attitude of optimism toward the economy continue unabated.
Aman Gupta, Director of RPS Group
The RBI has retained the repo rate at 6.5 percent for the ninth consecutive time, which impinges in a huge way on real estate developers and investors. On the upside, stability in interest rates, along with the RBI’s now forecasted 4.5 percent inflation, gives an ideal platform for the planning and execution of long-term projects. It now enables developers to plan new projects confidently as financing costs are more predictable. Supply of new housing in Top 7 cities surged by 23 percent year-on-year in 2023, touching 3.65 lakh units. Subsequent supply would maintain this upward trajectory with stable interest rates and positive economic projections. In times of continuity concerning repo rates revised and sustained at the level taken, an unchanged status of interest rate will retain the lucrativeness of rental yield, already averaging 3-4 percent in major Indian cities on residential properties, and 7-9 percent with regard to commercial properties. With an RBI GDP growth projection of 7.2 percent for FY25, we may further witness sustained appreciation in property values—especially in fast-growth urban centers and their emerging satellite towns.
Gurmit Singh Arora, National President, Indian Plumbing Association
The RBI’s decision has a cascading effect on the whole realty ecosystem and allied industries, as it/storage kept the repo rate unchanged at 6.5% for the ninth time in a row. Construction contributes to about 6-8% of India’s GDP, he said; this stability gives predictability to funding costs for projects. On track to reach $1.4 trillion by 2025 in India, stable interest rates take an important seat in this race to growth for the construction sector. Also, the home improvement and interior design sectors get positively impacted with an unchanged repo rate. Stable EMIs will prompt more people to invest in renovations and upgrades. Furniture and Home decor market in India was valued at $32 billion in 2023 and is further likely to bloom under such stable economic conditions. In all, the proptech sector saw over $3.4 billion investments from 2009 through 2022 alone. More innovation in property technology and digital real estate services shall follow under the proptech umbrella due to predictable real estate market conditions.
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.
“The RBI’s decision to keep rates unchanged is on expected lines with an intention to keep inflation under check. While the RBI is focused on reining in inflation within its target limit, the expectation of good monsoon may prompt the apex bank to lower interest rates in the subsequent months thereby further propelling real estate sales momentum and also providing an opportunity to perspective homebuyers to enter in the market. While portraying a robust forecast for economic growth, the RBI’s all-round efforts will positively impact homebuyers sentiments and industry as well”
8, Aug 2024
Government’s Revised LTCG Policy on Real Estate: Implications and Industry Response
8th August, 2024: The government’s recent revision of the long-term capital gains (LTCG) tax policy on real estate has sparked significant interest and debate within the industry. The updated policy aims to streamline taxation rules for property transactions, potentially impacting both investors and homeowners. This revision is seen as a move towards enhancing transparency and efficiency in the real estate sector while aligning with broader economic objectives. Stakeholders, including real estate developers, investors, and tax experts, are closely monitoring the implications of these changes on market dynamics and investment decisions. As the new rules take effect, their impact on property prices, transaction volumes, and overall market sentiment remains a topic of keen observation and analysis.
The government’s decision to give the option to taxpayers to choose between 12.5 per cent LTCG and 20 per cent LTCG with indexation benefit for properties purchased before July 23, 2024 is a positive development for the real estate sector,” commented Mr. Samir Jasuja, Founder and CEO of PropEquity. “It addresses the apprehensions among property owners that they will have to shell more taxes in the absence of indexation benefit. Real estate has always been an important asset class for investment and if we have to make real estate a trillion-dollar industry than lesser taxes should be introduced.”
“The decision provides flexibility to property owners, allowing them to carefully evaluate their financial situation and select the tax option whenever they plan to sell,” said Mr. Sanjoo Bhadana, Founder & MD, 4S Developers. “It has removed the apprehensions among property owners that the new LTCG would have led to higher tax outgo. Now, depending on individual circumstances, one option might offer significant tax savings compared to the other. The amendments in the Finance Bill certainly add a layer of positivity for the real estate market.”
“The amendment in LTCG has given home owners the option to make an informed choice by opting for a method that involves a lesser tax outgo,” noted Mr. Vijay Harsh Jha, founder and CEO of VS Realtors (I) Pvt Ltd, a Gurugram-based property brokerage firm. “The real estate sector is quite enthused with this change in policy and we hope that real estate transactions are not impacted.”
These quotes highlight the varied perspectives within the real estate industry regarding the revised LTCG policy and underscore the potential implications for property owners and investors alike. As the sector adjusts to these changes, stakeholders will continue to monitor how these reforms shape the future landscape of real estate transactions and investment decisions.
8, Aug 2024
Government Revises Long-Term Capital Gains Tax Policy: Implications and Reactions
8th August, 2024: In a recent move, the government has announced significant changes regarding the long-term capital gains (LTCG) tax, aiming to redefine the taxation framework for investors. This decision comes amidst a backdrop of economic considerations and aims to balance revenue generation with investor sentiments.
The new policy includes revisions to the LTCG tax structure, which has garnered attention and mixed reactions from various sectors. It aims to provide clarity and predictability while addressing concerns about equity and fairness in the tax regime.
Key stakeholders, including investors, financial experts, and industry leaders, are closely monitoring the implications of this decision. They are evaluating how it could impact investment patterns, market dynamics, and overall economic growth.
Furthermore, the government’s rationale behind this decision emphasizes its commitment to fostering a conducive environment for sustainable economic development. This move is expected to play a crucial role in shaping the investment landscape in the coming months and beyond.
As discussions unfold and stakeholders adapt to the new tax regime, the broader implications of this decision will undoubtedly unfold, influencing economic policies and investor strategies in the foreseeable future.
Comments by Mr. Mohit Jain, Managing Director, Krisumi Corporation
The amendment moved by the Finance Minister offers flexibility in computing long-term capital gains (LTCG) tax, allowing taxpayers to choose between a lower rate of 12.5% without indexation or a higher 20% rate with indexation for properties acquired before July 23, 2024. This enables property owners to strategically plan their sales, paying the lower of the two tax rates. This change provides much-needed relief for property owners and, consequently, the real estate industry, a significant employment generator in the economy. It also allows for more stability in the real estate market.
8, Aug 2024
Social Beat Achieves Numerous Esteemed Industry Awards
Chennai, 08, August 2024: Social Beat, a leading digital marketing agency, capped a successful six months winning multiple awards across several prestigious platforms. These accolades highlight Social Beat’s excellence in creativity for digital campaigns, performance marketing and influencer collaborations.
At the Maddys Awards, Social Beat secured three silver awards in the Digital Campaigns category:
- Brand Campaign for Samsonite
- Social Media Campaign for Royal Sundaram
- Influencer Marketing Campaign for Samsonite
In the Social Samosa Awards, Social Beat earned:
- Gold for Best Use of Performance Marketing for Sundaram Mutual Fund
- Silver for Best Use of Creators/Influencers for Indian Terrain’s #WearThePants campaign
Social Beat also triumphed at the Front Benchers Awards with three gold awards:
- Gold in the Video category for Samsonite
- Gold in the Rural Marketing category for Fortune (Adani Wilmar)
- Gold in Social Media Best Use of Creator Collaboration
Mr. Vikas Chawla, Co-Founder of Social Beat, said, “These wins are a testament to the strategic thinking and creative ability of our teams across products, services and markets. We are really thrilled to be recognized across multiple categories and platforms reflecting our width and depth of capability. This also motivates us to continue delivering innovative and impactful campaigns that drive business growth for our clients.”
About Social Beat:
Founded in 2012, Social Beat is a digital growth partner, enabling brands to rise to the impossible. They drive business outcomes with a 300+ strong team of digital experts across Bengaluru, Mumbai, NCR, and Chennai. They are India’s fastest-growing independent digital marketing solutions company and manage 4% of digital media investment in India. Social Beat is a Google Premier Partner, and Meta Business Partner and works closely with ecosystem partners like Amazon, Hotstar, Salesforce & LinkedIn. D2Scale is their center of excellence for commerce & omni channels brands to drive growth via D2C & Marketplaces. Influencer.in is their creator economy product driving discovery and real-time reporting of impactful influencer marketing campaigns. They work as extended growth teams with leading brands like Bharat Matrimony, Adani Wilmar, Jaquar, Indian Terrain, Samsonite, Mankind Pharma, Kalpataru Group, Go Colors, Mahindra Finance, JK Cement, Sundaram Mutual, Khazana Jewellery and with hyperscaling startups including boAt, Niyo, Gamezy, A23 Games, EaseMyTrip, Kapiva, Drools and Sukoon Health on driving business outcomes through a combination of creativity and performance.
