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Indian government officials are discussing proposals to subsidize home loan interest rates, create new urban centers and reduce foreclosure delays as part of the prime minister’s meeting. Narendra Modi‘s 100-day agenda if he returns to office, people familiar with the matter said.
The plans include setting up about 10 new cities to expand the manufacturing and services sectors while easing population congestion, the officials said, asking not to be identified because the talks are private. The project will need initial financing of about 100 billion rupees ($1.2 billion), the people said.
The proposals build on the goals set out in the ruling party’s election manifesto released this week, which pledged to boost manufacturing and improve living conditions in India’s cities. Modi, while launching the manifesto, said he had directed officials to start working on programs to be implemented during the first 100 days of his term. In doing so, he showed his confidence in returning to office for a third consecutive term in the elections that start on Friday.
Officials are also discussing plans for a new interest subvention scheme on affordable housing loans, which was first announced by Modi last year, the people said. The subsidy is aimed at stimulating growth in the real estate sector.
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Officials said some of the proposals are likely to be part of the budget that the new government will release once it comes to power.
Some of the other recommendations include the following, the people said:
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Amending the Insolvency and Bankruptcy Act to reduce delays and maximize returns from liquidated assets. Increasing the strength of the bankruptcy tribunal for faster disposal of cases
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Implementation of rules to facilitate Indian companies to list shares directly on international stock exchanges in the financial hub of Gujarat. Although the rules were announced earlier this year, the listing process is still pending
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Concluding free trade agreements with Britain and Oman
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Developing an Indian-made commercial aircraft industry by 2035
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Preparing a blueprint for the development of India’s own credit rating business
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Urge states to push for more vehicle pollution reforms and make municipal corporations financially self-sufficient
Modi’s economic vision is to make India a developed country by 2047, an ambitious goal that economists say would be difficult to achieve without consistently high growth rates of around 8%.
A panel of officials gave a presentation to Modi last month, giving predictions for 2047, the people said. The projections include an increase in the size of the economy from $3.5 trillion to more than $30 trillion currently, and a sevenfold increase in per capita income to $18,000 a year, one of the people said.
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