Real Estate slowdown hits Modi’s plans for Jobs

The construction workers in New Delhi have been steadily losing jobs for the past one and a half year.  The builders are stopping the construction work abruptly causing unemployment for lakhs of youth in and around the city.  This is not the picture Mr. Narendra Modi had shown over a year ago. He had promised millions of jobs to the youth of India, but the truth is far behind the rosy picture that he had painted before the general elections last year. These youth are forced to go back home as they have no other means of livelihood in huge cities like New Delhi.

The builders are refusing to carry-on the construction work as they have a huge inventory of unsold homes to clear. They also are falling short of funds to complete the projects. 

Government doesn’t seem to ease the burdens on the builders or the unemployed youths. Modi’s government is refusing to come up with new policies that could expedite the process of selling these unsold inventories.

Ever since Modi’s government has come into power there has been stringent rules laid out on the black money too. Black money has been a major source of cash flow into this industry. Thus, without enough cash to back-up, builders are postponing the construction work. This will only have a negative impact on the overall GDP growth of India. 

India’s growth has been forecasted to 7 % for the coming year against the government target of 8.5%. More than 50% of the labor force has already left the city due to dearth of employment.  Many labourers are in a pitiful situation and they are ready to work for much lower salaries. 

Real estate business contributes one tenth of the Indian GDP and so it is very important that the government takes necessary action in time to save the industry and also people associated with it. The government has to reduce the interest rates and also freely invest in country’s infrastructure to recuperate Indian construction Industry.

The government has to act now and not react later. It is very important that the government intervenes in the construction industry and sets policies that will revive the industry, thus fulfilling its promise in providing employment to the youth of India and making inclusive growth a reality.