India Ratings & Research (Ind-Ra) said the ongoing depreciation of rupee against the dollar is eroding the cost advantage of external commercial borrowing (ECB) for domestic infrastructure projects. companies preferred to raise funds through ECB as interest rate charged on such loan is cheaper that credit in the local market
The Government has put infrastructure development at the top of its agenda in the current financial year. This was visible in the recently-announced Budget, where major focus was on outlay of highways and railways.
The GST Council’s decision to reduce the GST rates for under-construction residential housing projects will lead to marginal traction in demand and bring in more transparency for home buyers, according to India Ratings and Research (Ind-Ra).