Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Limited on the recent 3.0 stimulus package.

We are in technical recession for the first time in history. The stimulus 3.0 package shall add momentum to the already improving Q3 indicators, thereby accelerating recovery of the economy. However, one must be cautious and watch inflation, lack of capital spending and widening fiscal as a result of more borrowing. We are pleased to see that the Real Estate sector is getting attention from the Government. Despite all the recent measures, we feel that the 20% circle rate exemption is a welcome move but it is certainly not sufficient. The Government’s decision to give 12%+12% EPFO subsidy for new hires intending to encourage employment would prove beneficial only if the economic activity rationale, which is demand growth, happens. It is crucial to note that the Circle rate exemption of 20% also means State Governments must revise ready reckoner downward by 20% or reduce proportionate stamp duty to give short term relief.