Needless to say that Housing Construction Industry in India is equally important, and thrust to be laid on the fact that, this Industry is providing employment to more than 25 million workers. Besides this, by way of Taxes, Stamp duty and development charges etc., this Construction Industry is paying whooping sums to the Government. Yet, the Construction Industry has not been recognised as an Industry, due to which the conditions of construction workers is pathetic. It is not an exaggeration to say, the construction workers are the actual builders of the Nation, and yet they are in no way protected. There is no provision for Provident Fund or other essentials covers for them.
The Industry status is also badly needed to the developers, because in the absence of industry status, there is no institutional finance available for buying plot of land by the developers, resulting which the Developers are constrained 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’, and as such, there should not be any hesitation to grant ‘industry status’ to this much more important housing construction sector.
Above all, the Industry status to the Housing Construction industry is verymuch needed to attract NRI’s and foreign companies to plough funds in this industry, to boost housing and construction activities. This will eventually give a kick start to the sagging real estate market.
The real estate market 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 slowly dripping out of the reach of common man; and this position will have worst effect on the property market.
All these and other woes can be easily erased by just awarding ‘industry status’ to this Core sector of ‘Housing Construction’.