Government should give a boost to the Real Estate & NBFC sectors: Keki Mistry, Vice Chairman and CEO, HDFC Limited
During an interview with Zee Business, Keki Mistry, Vice Chairman and CEO, HDFC Limited, said that the government should give a boost to the real estate and NBFC sectors, as they are job creators.
The government should focus on job creation, economic growth and revival of real estate and NBFC sectors, says Keki Mistry, Vice Chairman and CEO, HDFC Limited. During an interview with Abhishek Satya Vratam, Zee Business, Mistry said that the government should give a boost to the real estate and NBFC sectors, as they are job creators. Excerpts:
Q: What is the meaning of full majority government for the economy and what is your outlook on this development?
A: I think, the new government is a phenomenal thing for the country. I would like to compliment to the Prime Minister, the party BJP and NDA for the achievement and the people of India for selecting with such a heavy mandate. So, I think for the next three-four months, the government will have a focus on job creation, economic growth and revival of the real estate sector and NBFC sector as well as on the rural economy and microfinance lending and more.
Q: The government has implemented several reforms in its first five-year term. Now, let us know about the expectations in relation to reform in the next five year?
A: I think several reforms have taken place in the system. In fact, the main reforms have been done but the government may bring sector-specific reforms. I think that the most important thing at this point of time is to do more for job creation, which comes through a boost to the industry and certain sectors of the economy like construction sector for example, which is a huge employment generator and a boost to construction will boost several other sectors of the economy, whether it is cement, steel and power among others. Also, construction creates a lot of jobs. Whether you have a look at construction worker, carpenters, plumbers and engineers, it creates jobs. Job creation is the number one factor and the second factor is that the core sector in the economy gets a boost by giving a boost to the housing sector. So, housing construction should be boosted. Secondly, the government should address the NBFC crisis related to unavailability of liquidity at the earliest.
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Q: Yes, the NBFC sector has gone through a bad phase and few companies have been able to be out of the crisis but the confidence hasn’t returned till date. Any suggestion to the government to address the problems being that is being faced by the NBFC sector?
A: I think the nervousness of the banks in lending to NBFC’s should go away. This nervousness can go through a proper sitting where you have people from the government, banking people and representatives of the NBFCs where all try to find a solution for the problem. Basically, the fear factor of lending should go away and that can be done through some persuasion and strong discussions, which the government will have to have with the main banks.
Q. Do you think the new government will increase its focus on housing for all scheme?
A: See, I think that the government should have a focus on the housing sector mainly because of the factors that I mentioned earlier. Because housing and construction create a job. Creation of job provides income to people and when they have an income they go and spend money, which gives a boost to consumption. Thus, a boost to the housing sector will also give a boost to consumption. So, in my view, housing and construction all will get a boost and should get a boost.
Q: What is the importance of regulations for the NBFC sector?
A: I think, NBFC needs funds and liquidity at this moment. Basically, it is a crisis of confidence as the kind of confidence that should be in the system is not available right now. You must have in mind that post IL&FS default in August every single CP, bond, debenture, interest payment has been meeting by every single NBFC and no one has defaulted in the system till date. So, the panic and nervousness that exist in the market should go away. Secondly, the real estate sector should be boosted. So, real estate and NBFC are two sectors which will need a boost.