"For a long time RBI has been consistently taking steps that do not encourage real estate sector despite the well recognized fact that the industry contributes handsomely to the country's GDP, apart from creating massive employment," he said.
In a situation where country's economy needs a big boost and the overall growth needs to be given top priority, one would have expected the RBI to tow the government policy to encourage affordable housing in a big way.
Appealing to the government for taking steps outside the RBI Monetary Policy, Mr. Jain wondered as to how we could dream of affordable housing when the cost of construction is unaffordable.
Appreciating Modi Government's policy towards "Smart City" and "Housing for all by 2022" he pointed out "Smart City requires Smart Policies".
Contrary to the pressure from the government, technical advisory and the various other groups, RBI Governor Raghuram Rajan decided to not reduce the key interest rates in the central bank's monetary policy review. Retail inflation, as measured by the consumer price index (CPI), has decelerated sharply since the fourth bi-monthly statement of September. However, Dr. Rajan said that it would be premature to change the monetary policy at the current stage, yet hinted that if things progress as they are right now, early next year could see some rate cuts.