Even as the housing prices remain elevated, the companies in the real estate sector must cut home prices to clear the unsold inventory, according to economic survey 2020 tabled in the Parliament on Friday. On weakening balance sheets of the banks and the non-banking finance companies (NBFCs), the economic survey said that an increase in sales of homes could help in resolving the problem. The survey also called for improving governance in public sector banks and the need for more disclosure of information to build trust. It also talked about dwarfism in the banking sector.
The survey projected India’s economic growth at 6 per cent to 6.5 per cent in the next financial year starting April 1, saying growth has bottomed out. The growth in 2020-21 compares to a projected 5 per cent expansion in 2019-20.
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Finance Minister Nirmala Sitharaman is slated to present the second budget of the second Narendra Modi government on February 1, 2020. India faces its worst economic slowdown in a decade. Growth slipped to 4.5 per cent in the July-September quarter, imperiling job prospects for millions of young people entering the workforce each year. The government has estimated gross domestic product expansion at 5 per cent for the financial year ending on March 31, which would be the slowest pace since the global financial crisis of 2008-09.