Budget 2024-25: Towards Long-Term Vision of Viksit Bharat

Focused on fostering inclusive and sustained physical and digital infrastructure and real estate growth, the full-fledged budget for FY'25 builds on earlier budgets to transform the economy and achieve the larger long-term aim of Viksit Bharat.

Vinod Behl

Urban Infra Development

Towards Long-Term Vision of Viksit Bharat

Recognizing infrastructure development as a key to economic growth, this year's budget provided ₹11.11 lakh crore capex support (3.4 percent of the GDP) to boost infrastructure and connectivity growth, especially in Tier 2-3 cities. The capex for railways has risen to ₹2.65 trillion. To give further push to urban development in states, ₹1.5 trillion has been allocated for interest-free loans to states.

Coalition compulsions saw the Centre splurging on Andhra Pradesh and Bihar- ₹15000 crore allocation for development of Amravati city, ₹26000 crore for 4 road projects to facilitate Golden Quadrilateral project, and ₹21400 crore for a power plant. The creation of 12 new industrial parks under the National Industrial Corridor Development Programme is another highlight of the Budget. There are specific initiatives aimed at transforming the eastern regions of Bihar Jharkhand, Orissa and West Bengal. This includes development of key tourist destinations of Rajgir, Nalanda, Orissa. In order to boost liveability index and enhance quality of life, the Budget focuses on improving civic infra structure like water supply, sanitation, solid waste management, and sewage treatment.

Rural Infra Development

While the Budget laid a big emphasis on promoting urban infrastructure, several policy initiatives on rural infrastructure development were outlined in the Budget to fast-track rural economy. For this, an allocation of ₹2.66 lakh crore has been made in the Budget. An announcement was also made to provide all-weather connectivity to 25000 villages under Pradhan Mantri Gram Sadak Yojana (PMGSY). The Budget also talks about a new policy for all-round development of the cooperative sector.

Boost to Industrial Infrastructure

Several initiatives are taken in the budget boost industrial infrastructure. Credit guarantee schemes for MSMEs with a new credit assessment model, a guarantee cover of Es 100 crore, PLI push to automobiles and electronics sector, and relief to startups with the abolition of angel tax, will help steer India towards a manufacturing hub, in turn boosting industrial infrastructure. The creation of 12 new industrial parks and the development of an industrial node at Gaya on Amritsar-Kolkata Industrial Corridor will further help bolster industrial infrastructure.

Public-Private Sector Push to Infrastructure

Several schemes are announced in the Budget around Public-Private Participation (PPP) to push infrastructure development . These include setting up E-Commerce export hubs, rental housing for industrial workers, and the energy sector.

Promotion of Private Investment

The Budget takes the focus away from divestment and towards triggering private investment into infrastructure sector while keeping the capex momentum going. The push to private investment is to be achieved through viability funding and enabling policies. Laying the ground for further reforms, the Budget proposes to simplify norms to boost foreign investment in the backdrop of fall in FDI.

Looking Ahead

Though effective implementation of budgetary provisions will be key to achieving the desired results, the prudent yet progressive Budget may well ensure sustained growth, helping the infrastructure sector to become a USD 130 billion industry.

Positive Path For Real Estate

The Budget gives a major direct push through housing, particularly affordable housing, under Pradhan Mantri Awas Yojana (PMAY), providing indirect boost through infrastructure development and paving a positive path for the promotion and growth of the real estate sector.

Housing Push to Urban Development

Providing a strategic roadmap for real estate, the Budget is aimed at boosting urban development through housing push. It sets aside ₹10 lakh crore to propel urban housing for poor and middle-class families under Pradhan Mantri Awas Yojana -Urban (PMAY-Urban), benefitting the affordable housing sector. Under this flagship scheme, 10 million urban affordable housing units will be constructed with the help of central funding of ₹2.2 lakh crore over the next 5 years.

Rural Housing Push

The Budget has made a provision for building additional 3 crore dwelling units in rural India under PMAY-Gramin. For this, the government has allocated ₹54000 crore for the rural housing programme in the FY'25 Budget against ₹32000 crore in the revised estimates in the last budget.

Disposable Income Boost to Housing

The provision for employment boosting schemes and relief in personal income tax by increasing standard deduction from ₹25000 to ₹75000, will boost disposable income, in turn pushing housing demand.

Stamp Duty Rationalisation Booster For Housing

The Budget proposal to rationalise stamp duty, motivating states to come on board to cut transaction costs, especially reducing stamp duty on property purchased by women, will boost home ownership.

Housing Boost Through Rental Housing

The provisions for new industrial parks and export hubs in the budget along with rental housing for workers, will give a major push to housing.

Boost to Commercial Real Estate

Along with residential segment, commercial real estate will also get a boost. A digital public infra?? and abolition of angel tax, simplification of access to credit for MSMEs, will boost businesses, in turn leading to growth in commercial real estate. However, increase in capital gains tax along with hike in exemption limit presents a mixed bag for investors.

Transit-Oriented & Redevelopment Push to Real Estate

Trransit-oriented development in 14 large cities and brownfield redevelopment in 100 large cities are among the budgetary measures which will provide push to real estate.

Land Records Digitization & Liberalising FDI Norms to Boost Investment

The provision for Budget proposals?? to digitise land records and liberalise FDI norms, will help boost investment in real estate.

Looking Ahead

With all the positive measures, the Budget lays a robust roadmap for real estate and infra growth.

INDUSTRY BUDGET REACTIONS

Boman Irani - President, CREDAI

The Government continues to recognize urbanization and cities as key growth hubs. With a capital expenditure of ₹11.11 lakh crore, representing 3.4% of GDP, for infrastructure development, connectivity across the country will be significantly enhanced. The introduction of credit guarantee schemes for MSMEs in manufacturing, featuring a new credit assessment model and a guarantee cover of ₹100 crore, will not only create employment but also support the Hon’ble PM’s “Make in India” vision and position India as a global manufacturing hub.

Anupama Reddy - Vice President & Co-Group Head - Corporate Ratings, ICRA Limited

The continued focus on PMAY – Urban with an investment of ₹10 trillion over the next 5 years is likely to result in a positive for the affordable housing real estate segment. Further, the moderation in the stamp duty rates to have a positive impact for home buyers.

Further, the target construction of 3 crore houses under Pradhan Mantri Awas Yojana - rural and urban, and 1 crore housing needs under PM Awas Yojana Urban 2.0 will result in an increase in the construction activity and in turn boost cement demand.

Dr Niranjan Hiranandani - Chairman – Hiranandani and NAREDCO

India Inc. welcomes the all-encompassing Union Budget 2024 enthusiastically, recognizing the government's keen focus on fiscal incentives and structural reforms that prioritize employment-centric sectors. The budget’s strategic emphasis on skilling through private sector internships, salary support, and CSR-funded training demonstrates a vital commitment to enhancing youth employability, positioning them as the primary growth engines of our economy.

Y. R. Nagaraja - Managing Director, Ramky Infrastructure Limited

The Viksit Bharat mission's nine priorities reveal extensive opportunities for both public and private entities through enabling policies and fiscal support. The substantial capital expenditure of ₹11.11 lakh crore for infrastructure development, coupled with the sanctioning of twelve fully equipped "plug and play" industrial parks, promises to significantly boost the nation’s manufacturing capabilities and generate a surge in employment opportunities. The roadmap for developing similar parks in 100 cities highlights a decentralized approach to industrial development, actively incorporating private-sector partnerships.

Shrinivas Rao - FRICS, CEO, Vestian

The allocation of ₹10 lakh crore to develop one crore urban houses under PMAY, along with improved transparency in rental housing markets, digitization of land records, and reduction in stamp duty, is a significant step forward. Additionally, the government’s push for clean energy and sustainability is likely to positively influence the real estate sector. Overall, the emphasis on infrastructure development will have a direct and indirect positive impact on the real estate market.

Dimitrov Krishnan - Managing Director, Volvo CE India

We welcome the Budget 2024-25 for providing a significant boost to the construction equipment sector. The Viksit Bharat vision by 2047 emphasizes the importance of substantial resources for infrastructure development to enhance India's growth trajectory. The proposed increase in capital expenditure by 11.1% to ₹11.11 lakh crore for FY2025 will significantly support economic growth and employment. The supportive regulatory policies align with the Prime Minister's vision of making India the third-largest global economy by 2031. Infrastructure and manufacturing are key priorities in this budget, crucial for driving economic growth and job creation.

Amit Uplenchwar - Director, Kalpataru Projects International Ltd.

It is encouraging to see the government promoting niche areas in the renewable energy ecosystem, such as pumped storage hydro projects and modular nuclear reactors. The commitments to enhance private investment through viability gap funding, enabling policies and regulations, and a market-based financing framework will attract private capital and stimulate business growth within the domestic market. A big thumbs-up to this futuristic budget!"

Deepak Shetty - CEO & Managing Director, JCB India Ltd.

A provision of ₹11 lakh crores, representing 3.4% of GDP, is set to positively impact infrastructure development with a significant multiplier effect on the economy. Financial assistance will create employment and skilling opportunities for over 20 lakh youth over a five-year period. Additionally, 1,000 Industrial Training Institutes will be modernized through a hub-and-spoke arrangement to enhance vocational training.

Amit Sharma - Managing Director & CEO, Tata Consulting Engineers

The focus on green growth is supported by a ₹35,000 crore investment, which includes the adoption of nuclear and clean energy technologies such as the Bharat Small Reactor (BSR) and Bharat Small Modular Reactor (BSMR). The roadmap also emphasizes private participation in nuclear energy, incentives for higher-efficiency Advanced Ultra Super Critical (AUSC) thermal plants, and the development of Pumped Storage Projects (PSP) for renewable energy integration. Additionally, a national policy on critical metals and minerals, along with the promotion of domestic solar cell and module manufacturing, outlines a comprehensive strategy for transitioning energy in hard-to-abate sectors.

Sheeshram Yadav - Founder & MD, Yugen Infra

The Government has announced a ₹2.2 lakh crore push to make housing more affordable. Under PM Awas Yojana Urban 2.0, an investment of ₹10 lakh crore will address the housing needs of the urban poor and middle class, paving the way for public-private partnerships in urban housing development. Additionally, the introduction of rental housing with dorm-like accommodations for industrial workers represents a significant step towards the welfare of real estate workers.

Manish Mehan - CEO & MD, TK Elevator India

The investment of ₹10 lakh crore to address the housing needs of 1 crore families and the construction of 3 crore additional houses is set to significantly boost the elevator industry. This massive housing initiative will drive demand for elevators, spurring growth and innovation within the sector.

Ajay Chaudhary - CMD, Ace Group

The allocation of ₹11.11 lakh crore towards capital expenditure in the recent budget is poised to drive significant infrastructure development. This substantial investment is likely to generate opportunities for high-end real estate projects that cater to the evolving needs of discerning homebuyers. The budget's emphasis on developing 'Cities as Growth Hubs' through strategic economic and transit planning is expected to bolster the luxury housing market.

Rakesh Reddy - Director, Aparna Constructions

Union Budget 2024-25 focuses on urban development, infrastructure, and widening the availability of affordable housing. The PM Awas Yojana Urban 2.0, designed to address the affordable housing needs of the lower and middle classes, allocates ₹2.2 lakh crore for urban housing and ₹10 lakh crore for interest subsidies, aiming to provide 3 million additional housing units across both rural and urban areas.

Sebi Joseph - President, Otis India

The emphasis on affordable housing and the development of 14 cities as growth hubs is commendable. Establishing industrial parks near 100 cities, increasing infrastructure spending to 3.4% of GDP, and boosting skilling and employment generation will significantly benefit the elevator and escalator industry while providing an impetus to the overall economy.

Manoj Purohit - Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India

The rationalisation of differential stamp duty levied across the states would ensure a level playing field and make the cost of investments in immovable property lucrative. Also, concessional rates for women investors would encourage investment by women and make them financially independent.

Shalabh Chaturvedi - Managing Director, CASE Construction Equipment – India & SAARC region

The allocation of ₹2.66 lakh crore for rural development, including infrastructure, in the Union Budget 2024-25 is a significant investment. The focus on employment and skills, with an allocation of ₹2 lakh crore, is encouraging. Various schemes for employment-linked incentives and skilling programs will help create a skilled workforce ready to meet the demands of modern infrastructure projects.

Ashwin Sheth - Chairman and Managing Director, Ashwin Sheth Group

The comprehensive focus on efficient urban planning, including transit-oriented development and enhanced infrastructure for water supply, sewage, and waste management across 100 large cities, will elevate the quality of urban living. The substantial ₹26,000 crore investment in road connectivity projects is set to create a new growth corridor, significantly boosting real estate demand in emerging regions.

Dr. J.K. Taylia - Chairman, ECHON

The government’s focus on renewable energy, especially solar power, is aligned with our commitment to sustainability thereby encouraging customers and builders swiftly adopt environment friendly alternatives. This focus on green energy presents opportunities for us to integrate more eco-friendly practices into our PVC manufacturing processes, meeting the growing global demand for sustainable products.

Harsh Parikh - Partner, Khaitan & Co

The government's plan to implement a policy for the rental housing market is a big step toward streamlining residential renting, potentially attracting large real estate players, including foreign investors, to establish residential complexes and ensure smooth renting processes.

Monu Ratra - ED and CEO, IIFL Home Finance Limited

This inclusive budget is set to generate employment, boost the MSME sector, enhance agricultural outputs, and provide a significant boost to the housing industry. Our recent expansions into tier 2, 3, and 4 towns align well with the key announcements made by the finance minister, positioning us to capitalize on these opportunities.

S.K Narvar - Group Chairman, Trident Realty

The commitment of ₹10 lakh crore in capital expenditure for infrastructure development provides a significant boost to the real estate sector, fostering growth and stability. By focusing on enhancing business ease and providing incentives for job creation, the government is invigorating the economy and creating a conducive environment for real estate development.

Ashish Agarwal - Director, AU Real Estate

By prioritizing ease of doing business and supporting job creation, this budget fosters an environment ripe for investment and innovation. The proposed investment of ₹10 lakh crore will not only meet the growing demand for housing but also stimulate economic growth, benefiting developers, buyers, and communities alike.

NS Rao - Group CFO, Ramky Group

The decision to retain the ₹11.11 lakh crore capex outlay for infrastructure over five years, coupled with fiscal support, is warmly welcomed. This commitment, along with efforts to attract private investment through viability gap funding and a market-driven financing framework, promises a bright future for infrastructure. Notably, the emphasis on plug-and-play industrial parks, as well as water, sewage, and municipal solid waste treatment, paves the way for SDG fulfillment and a circular economy.

Sankey Prasad - Chairman & MD, India & CMD - Middle East, Colliers Project Leaders

The Budget emphasizes employment generation, skilling, manufacturing augmentation, innovation, and inclusive growth. Announcements related to industrial parks and corridors are expected to invigorate the industrial and warehousing segments.

Shashank Vashishtha - Executive Director, Exp Realty India

The ₹10 lakh crore investment under PM Awas Yojana Urban 2.0, aimed at addressing the housing needs of urban poor and middle-class families, will not only tackle the demand for affordable housing but also has the potential to invigorate the entire real estate market.

Kunal Rishi - COO, Paras Buildtech

The measures announced, particularly the encouragement for states to moderate stamp duties and the consideration of reduced duties for properties purchased by women, are significant steps forward. The allocation of ₹11.11 lakh crore for capital expenditure further demonstrates the government’s commitment to infrastructure development.

Anshuman Magazine - Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE

The focus remains notably on setting up industrial parks and corridors, Purvodaya, PM Awas Yojana, urban housing, transit-oriented development of cities, and creative redevelopment across the country. PM Awas Yojana 2.0 aims to address the needs of 1 crore urban poor and middle-class families.

Vivek Singha - CEO, Smartworld Developers

The substantial allocation of ₹11.11 lakh crore for infrastructure development, representing 3.4% of India's GDP, will have far-reaching positive impacts on our industry. The government's encouragement for states to moderate stamp duty rates and consider further reductions for properties purchased by women is a welcome move that could stimulate property transactions and promote inclusivity in homeownership.

Badal Yagnik - Chief Executive Officer, Colliers India

The capital outlay of over ₹11 lakh crore for infrastructure, representing 3.4% of GDP, will boost equitable real estate growth in Tier I and II cities. Housing remains a key focus in the budget, with the PMAY scheme allocating ₹10 lakh crore for the development of 3 crore additional houses. This investment will drive construction in both urban and rural areas, creating a cascading effect on allied sectors.

Amit Goyal - Managing Director, India Sotheby's International Realty

The budget strikes a delicate balance by prioritizing infrastructure, job creation, and MSMEs while maintaining fiscal discipline. The commitment to reducing the deficit to 4.5% and below over the next few years is commendable, ensuring long-term economic stability, a high credit rating, and increased FDI inflows for India. In a young nation with a large youth population (40% under 25), skilling and job creation are crucial.

Sunil Dewali - Co-CEO of Andromeda Sales & Distribution Pvt. Ltd.

The announcement to make housing more affordable with a ₹2.2 lakh crore push under the PM Awas Yojana-Urban is a significant step forward.

Puneet Vidyarthi - Head of Marketing & Business Development – India & Saarc, Case Construction Equipment & President, Rural Marketing Association of India

The launch of Phase IV of the Pradhan Mantri Gram Sadak Yojana, with provisions for all-weather connectivity to 25,000 rural habitations, will ensure better access and integration for rural communities. Additionally, the Pradhan Mantri Janjatiya Unnat Gram Abhiyan aims to uplift 63,000 villages, directly benefiting 5 crore tribal people by enhancing their socio-economic conditions.

Tilak Raj Dua - Director General of the Digital Infrastructure Providers Association (DIPA)

This budget lays a solid foundation for India's digital and sustainable future, paving the way for improved connectivity and technological advancement across the nation.

Shashank Paranjape - Managing Director, Paranjape Schemes (Construction) Ltd.

“If the proposed measures such as reduction in stamp duty for first time homebuyers and women buyers are implemented then it will provide a much-needed boost to the real estate market”

Harsh Shah - CEO, IndiGrid

We welcome the rationalization of long-term capital gain taxation for business trusts in this budget. Taxing InvITs/REITs at parity with equities will enhance their attractiveness to investors and strengthen their position as platforms offering superior risk-adjusted returns.

Mahaveer Jain - Director & Head – Real Estate Sector, India Ratings and Research

The budget announcement encouraging states to reduce stamp duties for units purchased by women, along with aid under the Prime Minister Awas Yojana (Urban), could help the sector maintain positive demand growth, particularly in affordable housing, which has been struggling for the past three years. These changes are expected to have a positive impact in the medium term.

Prashant Sharma - President, NAREDCO Maharashtra

The announcement of a PM Package with five schemes focused on employment and skilling, with an allocation of ₹2 lakh crore, and a significant provision of ₹1.48 lakh crore for education, employment, and skilling, is a welcome move.

Pritam Chivukula - Co-Founder & Director, Tridhaatu Realty and Vice President, CREDAI-MCHI

The Finance Minister highlighted ongoing significant infrastructure investments, with ₹11,11,111 crore allocated for capital expenditure this year, amounting to 3.4% of GDP, and this substantial investment is set to continue over the next five years.

Abhyuday Jindal - Managing Director, Jindal Stainless

We welcome the exemption of duties on ferro nickel and the continuation of zero duty on ferrous scrap and pure nickel. These measures will help the domestic stainless steel and alloy steel industries maintain their competitiveness.

Vikas Garg - Joint Managing Director, Ganga Realty

PMAY Urban Housing 2.0, with a budget allocation of ₹10 lakh crore, aims to provide permanent housing for the lower strata of society residing in slums and ghettos. The central government will incentivize housing projects with nearly ₹2 lakh crore in financial aid, offering subsidized rates to those in need.

Saransh Trehan - Managing Director, Trehan Group

The introduction of rental housing to be built on a PPP model and the expansion of retail infrastructure will be crucial for empowering the real estate sector and housing segments. These initiatives will promote property development across metro areas as well as Tier 2 and 3 cities.

Dushyant Singh - Director, Orion One 32

The announcement of Urban Housing 2.0, with a budget allocation of ₹10 lakh crore, will secure the lives of thousands struggling to make ends meet and living in makeshift homes in urban areas. The availability of homes at subsidized rates will incentivize them to invest in property.

Shiven Vikram Bhatia - Executive Director, Splendor Group

The introduction of PMAY Urban Housing 2.0, with an allocation of ₹10 lakh crore, underscores the government's unwavering commitment to achieving Housing for All. The Budget's focus on infrastructure development, including strategic investments in roads, railways, and urban amenities, is poised to drive robust growth in the real estate sector.

Neeraj K Mishra - Executive Director, Ganga Realty

A renewed focus on employment creation in the Budget is noteworthy and will attract upskilled talent in real estate too.

Anshul Jain - Chief Executive - India, SE Asia & APAC Tenant Representation, Cushman & Wakefield

This budget focuses on consolidating gains in the engineering and manufacturing sectors while boosting formal job creation and skill development. The abolition of angel tax and reduction of corporate tax on foreign companies are particularly encouraging for start-ups and Global Capability Centers (GCCs), which drive commercial real estate demand. We are also excited about the initiatives related to land reforms and the digitalization of land records.

Kalyan Chakrabarti - CEO, Emaar India

This ₹10 lakh crore investment represents a strong step towards creating an inclusive and sustainable urban ecosystem. Making affordable loans more accessible will effectively help people achieve the dream of homeownership.

Rohit Saboo - President and CEO, National Engineering Industries

Incentivizing job creation in the manufacturing sector through a scheme linked to employing first-time employees is a positive step. Exempting customs duty on essential minerals like lithium, cobalt, and nickel will significantly boost India's electric vehicle sector, reinforcing the country's commitment to sustainability and a greener future.

B.Santhanam - CEO, Saint-Gobain India and APAC

The emphasis on create, design and 'Make in India' further strengthens domestic manufacturing and promotes self-reliance. Investments in industrial corridors, MSME credit, and PM Awas Yojana Urban 2.0 will drive growth. The budget strikes a balance between economic growth, social welfare, and innovation, charting a robust path for India's future.

Kavita Shirvaikar - Acting Managing Director, Patel Engineering Ltd.

The substantial allocation for capital expenditure and long-term interest-free loans to states underscores a forward-thinking approach to stimulate economic growth and innovation. By encouraging private sector involvement through viability gap funding and market-based financing frameworks, the strategy aims to create a dynamic environment for advancing infrastructure.

Rajan Aiyer - Vice President and Managing Director, Trimble, South Asia Region

The significant increase in infrastructure investment under PM Awas Yojana-Urban 2.0 will address the housing needs and improve the living conditions of millions. This ambitious vision not only benefits the infrastructure and housing sectors but also fuels economic growth, aligning with Prime Minister Narendra Modi’s vision of a 'Viksit Bharat' by 2047.

Alakshendra Singh - Head of Corporate Communications, Eros Group

The Union Budget 2024 is a missed opportunity for India's real estate sector. While ₹10 lakh crore for urban housing under PMAY-Urban 2.0 is commendable, the central assistance of ₹2.2 lakh crore over five years is insufficient to address the housing crisis. Promises of three crore additional houses sound impressive but are doubtful given past execution rates. Urban development is prioritized, but support for rental housing and regulatory frameworks is weak. The initiative for working women hostels is positive but lacks a robust rental regulatory framework. Despite a promising focus on industrial parks and infrastructure, the absence of substantial incentives for private players in the rental housing market is disappointing. Fiscal deficit control is important, but not at the cost of necessary real estate reforms.

Ravi Saund - Founding Director, Emperium Pvt. Ltd.

The announcement of a ₹10 lakh crore investment in urban housing through PM Awas Yojana-Urban 2.0 represents a major boost for India’s real estate sector. The ₹2.2 lakh crore allocated for central assistance will revitalize the affordable housing segment, which has struggled in recent years.

Vikas Aggarwal - COO, Worldwide Realty

Nirmala Sitharaman's bold move to allocate ₹10 lakh crore to PM Awas Yojana-Urban 2.0 marks a pivotal moment for the real estate sector. As urbanization accelerates towards 50% by 2050, this comprehensive investment is precisely what is needed to meet the burgeoning housing demands.

Mohit Mittal - CEO, Mores Techno

Employment-linked incentives through three schemes designed to skill 20 lakh youth over the next five years are expected to drive government investment in infrastructure. This will lead to improved roads, transportation, and utilities, enhancing the appeal of nearby real estate. Additionally, the introduction of 12 new industrial parks under the National Industrial Corridor, aimed at creating integrated zones, is anticipated to significantly increase the supply of Grade A industrial spaces.

Gaurav Pandey - Co-Chairman, FICCI Committee on Urban Development and Real Estate and Managing Director and CEO, Godrej Properties Ltd.

The Union Budget reaffirms the government's commitment to housing, urban development, and infrastructure growth with an allocation of ₹11.11 lakh crore for capital expenditure, accounting for 3.4% of GDP, benefiting the real estate sector in the long term. Initiatives boosting women's workforce participation, such as specific skilling programs and reduced stamp duty rates, along with additional reductions for properties purchased by women, are progressive measures aimed at enhancing real estate transactions, inclusivity, and financial independence.

Vinayak Pai - CEO & MD, Tata Projects

The emphasis on upgrading 1,000 industry training institutes is a game-changer and aligns with our ongoing initiatives on rapid skill development, such as ‘Skill Shakti’ and ‘Nirman Nayak’. This addresses the critical need for a skilled workforce in our sector.

Sunil Mathur - Managing Director and Chief Executive Officer, Siemens Limited

We welcome the Government’s consistent approach towards fiscal consolidation, supporting capex in Infrastructure by reconfirming the allocation of Rs.11.11 lakh crore in the Budget as also additional allocations towards improving urban and rural infrastructure.

Sapan Gupta - Chief Financial Officer, Rodic Consultants

The budget underscores the critical role of infrastructure in driving economic progress with substantial investments in railways, roads, and airports. The allocation of ₹1.5 lakh crore for rail infrastructure and the expansion of the National Highway network will enhance connectivity, reduce logistical costs, and promote regional development.

Ramani Sastri - Chairman & MD, Sterling Developers Pvt. Ltd.

While the budget has indirectly boosted the real estate sector, it could have addressed several key expectations. Offering relief to first-time homebuyers would have further stimulated the sector. Moving forward, the sector urgently needs tax breaks, single-window clearance, and an industry status tag to sustain its upward trajectory. With these additional supportive regulatory policies, the real estate sector is poised to play a crucial role in achieving India’s $5 trillion economy goal.

LC Mittal - Director, Motia Group

Bringing investment in urban housing to ₹10 lakh crore under PM AWAS Yojana Urban 2.0 is a quantum jump seen in the nation's response towards its urban housing crisis.

Aman Gupta - Director of RPS Group

The ambitious targets to meet the housing needs of 1 crore urban families under PM Awas Yojana-Urban 2.0 highlight the enormity of the urban housing challenge in India. With urbanization projected to reach 50% by 2050, the ₹10 lakh crore investment is both timely and essential. The ₹2.2 lakh crore central assistance represents a robust model of public-private partnership, where government support will serve as a catalyst for private investment.

Anurag Goel - Director, Goel Ganga Developments

The FM's announcement of a ₹10 lakh crore investment in urban housing under PM Awas Yojana-Urban 2.0 is a significant boost for India's real estate sector. This substantial infusion, including ₹2.2 lakh crore in central assistance, has the potential to rejuvenate the affordable housing segment, which has faced challenges in recent years.

Siddharth Maurya - Founder & Managing Director, Vibhavangal Anukulakara Pvt Ltd.

The ₹10 lakh crore outlay for urban housing under PM Awas Yojana-Urban 2.0 represents a significant portion of India’s annual GDP, highlighting the government's priority on the housing sector. The ₹2.2 lakh crore central assistance spread over five years provides a stable funding base, which is crucial for long-term planning and development in the real estate sector.

Sandeep Runwal - Managing Director, Runwal

The government's commitment to economically disadvantaged urban residents and the middle class is evident in the substantial ₹10 lakh crore investment in urban housing under PMAY-Urban 2.0. The proposed stamp-duty reductions, including lower rates for female buyers, along with the digitization of property data, will enhance accessibility and attract potential buyers.

Dharmendra Raichura - VP of Finance, Ashar Group

The budget underscores the government's commitment to fostering urban development with a sustained focus on infrastructure, maintaining a capex outlay of ₹11.11 lakh crore. Initiatives like transparent rental markets and support for urban haats through programs like Svanidhi position the real estate sector as a crucial driver of India's economic growth. This budget offers a clear roadmap toward a developed India by 2047, presenting significant opportunities for real estate developers to contribute to and benefit from the nation's progress.

Pradeep Misra - Chairman & MD, Rudrabhishek Enterprises Ltd.

The 2024 budget demonstrates a strong focus on inclusive development with an emphasis on infrastructure, addressing both local needs and global economic conditions. The substantial investment of ₹11.11 lakh crore for infrastructure, amounting to 3.4% of GDP, reflects the government's commitment to driving growth through robust infrastructure spending.

Ajitesh Korupolu - Founder & CEO, ASBL

The Union Budget 2024 balances support for sustainable growth in real estate with focused initiatives. Augmented tax incentives for first-time homebuyers and enhanced benefits for women are poised to stimulate market demand. Emphasis on affordable housing, faster project approvals, and urban infrastructure development will boost market efficiency, benefiting developers and homebuyers alike.

Sumanth Reddy - Chairman NAR India

We commend the Government for reducing capital gains tax from 20% to 12.5%, which will boost real estate investment. Their incentives for affordable housing will also benefit the construction sector. However, reducing GST on real estate brokerage services to 5% is still a crucial need.

Ajay Chaudhary - CMD, Ace Group

Anurag Mathur - CEO, Savills India

This budget emphasizes urban and infrastructure development, benefiting manufacturing and housing. The focus on 'Cities as Growth Hubs' highlights key initiatives, including Transit-Oriented Development in 14 major cities and creative brownfield redevelopment. These measures are crucial for rejuvenating cities under significant strain.

Dr. Gautam Kanodia - Managing Director, Kanodia Group

The government’s strategic focus on infrastructure, with an allocation exceeding INR 11.11 lakh crore (about 3.4% of India’s GDP), is highly commendable. This substantial investment will enhance national infrastructure and create numerous employment opportunities, especially in housing projects.

Rizwan Sajan - Founder and Chairman, Danube Group

The Budget 2024-25 is poised to boost the luxury housing market in India. The substantial ₹11.11 lakh crore allocation for capital expenditure is expected to stimulate real estate. Additionally, the government's emphasis on improving the ease of doing business will foster industry collaborations.

Arjunpreet Singh Sahni - Executive Director, Solitaire Group

Beneficial provisions for the real estate sector in this budget include the approval of 12 industrial parks under the National Industrial Corridor Development Program and the facilitation of rental housing for industrial workers through PPPs. Additionally, transit-oriented development programs for 14 major cities will enhance urban infrastructure. These forward-looking measures are set to drive demand and stimulate growth in the real estate sector.

Vijay Jain - Managing Director, Star Estate

We applaud the Budget for its comprehensive strategy to boost affordable housing, allocating ₹2.2 lakh crore under the PM Awas Yojana-Urban. Another major advancement is the ₹10 lakh crore investment to address the housing needs of one crore poor and middle-class families.

Manish Satnaliwala - CEO, National Infrastructure Trust

The budget underscores the Government’s commitment to strengthening the infrastructure sector, vital for long-term economic growth. To align listed equity with infrastructure investment trusts (InvITs), the holding period is reduced from 36 to 12 months. While the capital gains tax rate increase on listed shares and units from 10% to 12.5% (long term) and 15% to 20% (short term) may lead to a bearish market reaction, the budget overall is positive, emphasizing sustainable economic growth.

KK Agarwal - CMD, CJ Darcl Logistics Ltd.

The Union Budget 2024-25 adopts a forward-looking approach to advance India’s logistics and infrastructure. Key initiatives include the Patna-Purnea and Buxar-Bhagalpur Expressways, the Gaya industrial node on the Amritsar-Kolkata Corridor, and twelve new industrial parks under the National Industrial Corridor Development Programme. These projects will enhance regional connectivity and economic activity in the eastern region, embodying the spirit of ‘Vikas bhi, Virasat bhi’.

Sanjeev Srivastva - Chairman & Founder, Assotech Group

The ₹50,000 crore allocation for infrastructure development will invigorate our industry, enhancing urban and rural landscapes. With a focus on infrastructure and the real estate boom in rapidly urbanizing states like Orissa, Assotech Group is well-positioned to leverage these developments.

Aalap Bansal - Partner, Industrial & Infrastructure Development Advisory, KPMG in India

The Union Budget 2024-2025 aims to position India as a global tourist destination by developing major tourist centers and corridors, focusing on historical and cultural sites. Key projects include the Vishnupad Temple Corridor in Gaya, the Mahabodhi Temple Corridor in Bodhgaya, and assistance for Odisha's temple ecosystem. Comprehensive development for Rajgir in Bihar, significant for Hindus, Buddhists, and Jains, and promoting the Nalanda-Rajgir corridor and reviving Nalanda University are also planned. However, the tourism sector requires a more comprehensive strategy to fully realize India's potential as a global destination.

Vivek Agarwal - Partner and Head - Public Infrastructure, KPMG in India

Budget 2024 successfully sets the baseline for employing India's large young population with employment-linked incentives, future skilling, entrepreneurship opportunities, and e-commerce access for small businesses. It maintains momentum in capital investment and infrastructure creation while managing political expectations and keeping the fiscal deficit at 4.9%.

Sarveshaa SB - Chairman &MD, BHADRA Group

The "Cities as Growth Hubs" initiative, focusing on economic and transit planning, offers exciting opportunities for real estate development. BHADRA Group's expertise in creating sustainable and well-connected communities positions them to significantly contribute to this vision. The budget's substantial investment in infrastructure development (₹11.11 lakh crore) and the launch of Phase-IV of PMGSY to connect rural areas bode well for the realty sector. BHADRA Group, recognizing the importance of infrastructure, will continue to develop projects in well-connected locations, contributing to a more prosperous and sustainable future for all.

Sidharth Pansari - Director of Primarc Group & President of Credai Bengal

The Budget 2024-2025 reaffirms our commitment to urban development, announcing three crore additional houses under PM Awas Yojana. This will significantly boost the real estate market, driving demand and enhancing infrastructure development.

Manju Yagnik - Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra

The budget marks a significant shift in addressing housing needs for 1 crore urban poor and middle-class families with a ₹10 lakh crore investment. The PM Surya Ghar Muft Bijli Yojana, aiming to install rooftop solar panels for one crore families, promotes sustainable living and renewable energy. Additionally, the budget emphasizes transparent rental housing markets and improved services for urban development in 100 large cities, reflecting a forward-thinking approach.

Sunil Sisodiya - Founder, Geetanjali Homestate

The Budget allocation of ₹10 lakh crore under the PM Awas Yojana-Urban is a monumental step for the residential real estate sector.

Nirmalya Chatterjee, Country VP, Nemetschek Group - Indian Subcontinent

The Union Budget 2024-25 allocates over ₹11 lakh crores for capital expenditure, or 3.4% of GDP, highlighting a strong commitment to infrastructure development. This focus on connectivity and urban infrastructure benefits the Indian market and aligns with Nemetschek Group's vision. The budget’s emphasis on employment, upskilling, and inclusive growth, along with initiatives like industrial parks and mineral recycling, supports India’s growth trajectory.

Vishal Raheja - Founder & MD of InvestoXpert

The ₹10 lakh crore investment in affordable housing under PM Awas Yojana-Urban aims to meet the needs of 1 crore urban poor, showing strong support for residential real estate. Emphasis on industrial parks and infrastructure will further boost economic growth and energize the real estate market.

Subhash Sethi - Chairman, SPML Infra Limited

The ₹11.11 lakh crore allocation for infrastructure, up 11.1% from last year and 3.4% of GDP, is significant. The ₹1.5 lakh crore in long-term, interest-free loans for state projects further supports this. With private sector backing through viability gap funding and favorable policies, these measures will attract investors and boost long-term growth in India’s infrastructure.

Published on 24 July 2024

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