Thursday, June 7, 2012

Is real estate price rise in India backed by fundamentals?

Dr.T.V.Gopalakrishnan , Mumbai , says: The real estate price rise in India is on account of increase in the inequality of income thanks to wrong taxation policies, increased retail loans to middle class people as they are better employed due to IT boost observed in the late 1990s, high level of corruption and prevalence of huge black money. It does not in anyway indicate the strength of the economy and the fundamentals of the economy are in fact going from bad to worse every day.This abnormal rise in real price should be taken as an alarm by the Govt for an endangering economic situation at a later date.
7 Jun 2012, 1849 hrs IST
This commend is in response to an opinion poll in ET dated 7/06/12.

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