A Few Thoughts
At last, the Central Government’s GST Council reduced the GST rates on many products in October. Thankfully, the GST on basic construction materials such as cement has been lowered from 28% to 18%. Cement is no longer considered a ‘luxury or sin’ good. I am sure rationalised GST rates will boost consumption and over time will bring more revenue to the government.
RBI’s reduction in interest rates is also a step in the right direction and should result in increased industrial activity, and demands for goods due to lower borrowing cost. Government at the centre needs to be applauded for controlling inflation to one of the lowest rates in a long time. What is of concern in spite of higher GDP growth rate of 8.2% in Q2, is a kind of uneasiness that is persisting in the economy. Rupee has depreciated substantially in recent times, and foreign investors are not showing the required confidence in our economy – probably due to delay in trade agreement between Bharat and USA, and also due to ‘not so palatable’ actions, almost on a daily basis, by the leader of the largest economy in the world. However, we have to give credit to President Trump for bringing down the intensity of war between Israel and Palestine, resulting in hope for normalcy to return.
At the city level, the much discussed and highly debatable action to split BBMP into five individual corporations under the GBA (Greater Bengaluru Authority) has become a reality. There is enough and more confusion for the citizens and the businesses. One can only hope and pray the decision to split is a wise decision.
Bengaluru city is receiving a lot of flak for poor quality of roads and unmanageable traffic, resulting in ‘bad press’, apart from loss of productivity and threat of few IT companies moving out of the city. A population growth of nearly 3% per annum and an addition of 60,000 vehicles per month is a nightmare even to a proactive civic authority. The magnitude can be realised if one knows that Bengaluru adds the equivalent population of Seattle city every two years.
Citizens can only hope and pray that the State Govt. comes with solutions by way
of big improvement in infrastructure of the city, and by creating social infrastructure and business opportunities in all district headquarters of Karnataka to help decongest Bengaluru city.
While ‘ease of doing business’ is much talked about, the reality is that, year after year, it is becoming tougher to do business with increased compliances, more rules, and frequent tinkering of regulations. Number of our project launches are delayed due to delay in receipt of approvals. Bengaluru badly needs a new master plan. The previous one expired in 2015. A fast growing city requires a dynamic and forward-looking plan, at least till 2047.
Our subsidiary Brigade Hotel Ventures Ltd. (BHVL), came up with a successful IPO in July 2025, though it is a crowded market for raising equity funds. The funds raised will surely help BHVL to more than double the key count by 2030 from the existing 1600 keys.
Our ‘not-for-profit’ trust, Brigade Foundation, is proud to have set up a one-of-a-kind ‘Freedom Fighters Memorial’ in my hometown Chikmagalur. It’s very unique and worth a visit by the general public and tourists. Brigade Foundation has also launched a ‘Saplings to Sanctuary’ initiative to grow 1 lakh trees in Aerospace Park, KIADB in Devanahalli.
As we enter the new year, I wish all the readers a happy and peaceful 2026, with more sweetness and less bitterness, just as we pray during the festival of Ugadi.