Govt trying to fix real estate sector; not eyeing short-term solutions: DIPP Secy

Ramesh Abhishek

Secretary | DIPP

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From the sidelines of the World Economic Forum India Summit, DIPP Secretary Ramesh Abhishek spoke to CNBC's Martin Soong about Government's tax moves on the real estate sector.

He said real estate in India was been driven by cash economy and so prices of land and real estate were staggering compared to any standards, which was not justified with our per capita income. Therefore, the government brought in number of reforms in the real estate sector, he said. GST, RERA have now come into existence.

Government is trying to fix the real estate sector in such a way that there are fundamental changes, which could have some impact in the short-term but one has to live with that, said Abhishek. It is important to grow rationally, he added.

Government is also keen that the macro-economic stability should not be disturbed and so fiscal deficit targets have been adhered to, he said.