Winning back the aam investor
- Spot-fixing: Chandila was in touch with four sets of bookies, says Delhi Police
- Chinese Premier Li Keqiang arrives, to hold talks with PM on boundary, water issues
- IPL 2013: Delhi Daredevils crash to defeat, finish last
- Jaganmohan's wife attacks CBI, accuses it of working at Congress behest
- Blast accused death: UP govt seeks CBI probe, FIR against 42 persons
A recent RBI report had pointed out that in spite of the 2008 global financial meltdown, real estate prices in urban Bihar and UP had actually gone up. Real estate prices in smaller urban pockets are going up rapidly. The velocity of land sale and purchase has also gone up as villagers are selling land and moving closer to the national highways. In my view, a certain level of cumulative liquidity has been embedded in India's growing land transaction market and this is fuelling structurally higher inflation levels as part of the money released from inflated land deals feeds into the demand stream. But this needs to be researched further.
The finance minister must come up with some creative ideas to increase the supply of land on a large scale to mitigate the inflationary expectations fed by land prices. This will require some vision as politicians in India deliberately restrict supply of land to eventually make five to seven times profit while allowing land use change for urbanisation. A tax on vacant land held beyond a period could be a solution. But this will require a self-sacrificing spirit from the political classes. Are they up to it?
- Former Ranji player among 3 more held
- Rajasthan Royals to file FIR against tainted trio
- If found guilty, BCCI to ask ICC to erase Sreesanth records
- Top cops among 42 named in death of blast accused
- Manmohan-Li talks: PM takes tough line on incursion issue
- Security forces blame Maoists, villagers say CoBRA man was killed in 'friendly fire'