India is a “honeymoons country” and its growth cannot be sustained by an economic boom that is accompanied by a rise in house prices, the chairman of India’s largest real estate company said on Tuesday.
In an interview with The Hindu, Shree Rajan said the country’s economic slowdown in recent years has not only slowed growth but also forced the government to look for alternatives to the existing model.
He also warned that the country has not been able to recover its growth rate in the past five years.
“The government has not created enough jobs, the GDP growth rate has not recovered.
There has been no growth in the real estate sector.
The economic growth has not gone up,” he said.
Rajan also criticised the country for not focusing on infrastructure and said it is “too slow” to develop a modern economy.
“India has been in a ‘Honeymoon’ phase for so long that it is not good for the country to go into the next phase of growth,” he added.
“We are not creating enough jobs and we have not built enough roads.
It is too slow for us to go in a new direction,” he warned.
Rajaan also questioned why the government has been slow to reform the system of taxation.
“It is not fair that the government is taking on so much debt in a country where people do not have a penny to their name.
It seems that the burden of debt is not being borne by the taxpayers,” he noted.
The real estate industry is India’s second-largest economy and the country is expected to generate nearly Rs 1,000 crore ($18 million) in gross domestic product in 2017-18.
The country is also one of the world’s fastest-growing countries, with an estimated 7.5% growth in GDP in 2016-17.