Boost required by Indian Real state companies

In current melt down no economy has been immune to effects of slowdowns across Industries, even depleting or at best stagnant employment opportunities and betterment has resulted in either cut on personal and family expenditures or postponement of many necessary expenditure, again putting pressure on companies involved in offering products or services. The vicious circle continues as poor sales poor profits and subsequently poor benefits to employee in form of incentive and salary hikes. So the effect of recession comes in full form leaving population with lesser purchasing power.

Government and companies are doing their best to boost confidence in masses for prosperous tomorrow. Many relaxations, waivers and grants etc are being offered to various industries to cope up with decreasing demands and help them improve their product offering. Companies too are trying their bit in offering many innovative discounts and value preposition to its customer to keep the demand in market.

I believe if government is concentrating on infrastructural development to generate demand from basic sectors and then capitalise on the upward mood of masses and develop service industries in second phase to counter present recession. I am sure this tough will not last longer.

I feel government should give some benefits and rebates to house owners and offer tax relief to first time house buyers in India. More and more people will be attracted to buy house, even couple should be given relaxations and tax benefits or even credit free loan to buy house. Government can put some conditions to hold that property for 5-7 years to stop sale and purchase business to take benefits of these relaxations for house buyers. Even people taking home loan should be asked to hold that property for 5-7 year or till the EMI of loan are being paid these property should be made non transferable.

This will help realtors to sell more houses in current time of recession and companies can use this to increase demand. Not only housing companies many other related industries like cement, iron, plywood, home décor etc will see the rise in demand and an environment of prosperity can be triggered.

Why Wholesale Price Index (WPI) and not Consumer Price Index (CPI)?

Everyday paper and concerned agencies are declaring gradual decline in inflation but realty is just opposite when one go to market and buys goods of daily need. All products like aloo, pyaj, atta, rice edible oil all are becoming costlier day by day.
I feel there is something wrong in calculating this decrease in inflation, as per available information this decrease in inflation is based on Wholesale Price Index (WPI) and not on Consumer Price Index (CPI). Because it is the consumer who is facing the problem as the prices in the market are increasing and Banks are decreasing Interest rates due to this available decreasing statistics of decreasing Inflation. Normal consumer is facing the problem of reducing purchasing power, and government should do something about it.
I don’t think the decision of banks to reduce lending and deposit rates would solve consumer plight as rising prices of essential commodities are reducing purchasing power and disturbing his monthly budget. Whereas, distributors and retailers are making good margins.
If we consider Per capita income of Indian urban population and the prevailing prices of daily needs items and routine family expenditure of a middle class family situation is far from ideal. Rising prices making life difficult and government should think of changing the system for calculating Inflation. Government should fix some percentage for maximum difference between WPI and CPI so that chances of hoarding and black marketing can be avoided.