In order to ensure resounding revival in the country's real estate sector, the Confederation of Real Estate Developers' Associations of India (Credai) in a recent move has demanded reforms to reverse the prevailing trend wherein the drastic fall in the fuel prices is not translating into price reduction of inputs like cement, steel and even transport. The government needs to regulate steel and cement prices just as the power regulators monitor tariff, Chairman and CMD, Lalit Kumar Jain, said, adding that despite reduced consumption there is a noticeable spurt in cement, steel and other building materials' prices. That apart, the construction industry has been battling the steep and steady rise in prices of cement, steel rods, bricks and other input material, which have recorded over 30% in the last three years. In view of this, the input cost on account of labor and high lending rate by banks has adversely hit the realty sector. He further added that it is a matter of concern that RBI has been giving a raw deal to the real estate industry irrespective of the fact that apart from being a labor intensive it also contributes significantly to the country's GDP growth.
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