Industry Status badly needed to Housing Construction Industry Building Concept
Government’s leaden footed approach to grant the industry status to the housing construction industry is the root cause of invasion of speculators in this core industry. In the absence of institutional finance to the construction industry, since it is not accorded industry status, the developers are compelled to raise funds either from speculators or borrow at whooping rates of interest with the result that the real estate prices became most unrealistic. The government has granted industry status even to the film industry. There should be no hesitation to grant industry status to this much more important construction sector. Construction industry in India is more important and is, providing employment to 22 million workers. By way of taxes, stamp duty and development charges etc. the industry is paying whooping sums to the government. Yet it is the most neglected industry. In the absence of the industry status the condition of construction workers is pathetic. They, who are the builders of the nation, are in no way protected. There is no provision for provident fund or other essential covers for them. The industry status is also badly needed to attract NRI’s and foreign companies to plough funds in the industry to boost housing and construction. This can give a kick start to the sagging real estate market. The real estate is not a speculative investment, but because of money supply constraints, it was made so. This has resulted in sky rocketing of real estate prices, and ultimately out of the reach of common man. This has the worst effect on the property market. Since there is no institutional finance available for buying plot of land. The developers raise money from informal source, at high rate of interest. Thus increasing the cost of the property. This can be easily remedied by awarding industry status to this core sector.