Funding the Future: India's Interim Budget 2024-25 Targets $134 Billion for Infrastructure Development
The total size of the 2024-25 Interim Budget stands at Rs 47.66 lakh crore — 6.1 per cent bigger than the revised estimate for 2023-24. To help meet the gap between its income and expenditure of Rs 16.85 lakh crore, or the fiscal deficit, pegged at lower-than-expected 5.1 percent of the GDP, the Centre will borrow Rs 14.13 lakh crore from the market by issuing bonds.
Prime Minister Shri Narendra Modi hailed the Interim Budget as “not merely an interim budget but an inclusive and innovative budget." He asserted, "This budget carries the confidence of continuity. It will empower all pillars of developed India - the youth, the poor, women, and farmers."
Prime Minister Modi remarked, "This budget is a reflection of the aspirations of Young India" and highlighted two significant decisions taken in the budget: a fund of Rs. 1 lakh crore has been announced for research and innovation, and extension of tax exemptions for startups.
Roads & Highways Infrastructure
In a strategic move aimed at sustaining India's position as one of the world's fastest-growing major economies, the FM announced a record-breaking capital expenditure (capex) of 11.11 trillion rupees (approximately $134 billion) for infrastructure creation in the fiscal year beginning April 1, 2024. The proposed capex is 11.1 per cent higher than the current fiscal year's allocation of little over 10 lakh core rupees (approximately $120 billion).The pre-election Budget 2024-25 document has allocated a marginally enhanced outlay of Rs 2.78 lakh crore for the highways sector as against Rs 2.70 lakh crore for 2023-24, which was later revised to Rs 2.76 lakh crore. The capital allocation for the Ministry of Road Transport & Highways increased although the growth is modest at 3%, which indicates the government's focus on the road sector and enables the Ministry to meet the completion targets for the Bharatmala and the NIP (National Infrastructure Pipeline).
Railways & Airports
After receiving the highest ever budgetary allocation in 2023-24, the outlay for Indian Railways for FY 2024-25 is Rs 2.5 lakh crore, nearly 5% higher than last year. A major chunk of expenditure for the Indian Railways comprises staff cost, estimated to be Rs 1.17 lakh crore for FY '25.Fuel costs including diesel and electricity will be Rs 10,735 crore and Rs 23,102 crore, respectively in FY '25.
There is an increase in the budgetary allocation for the National High Speed Rail Corporation (NHSRCL) to Rs 25,000 crore in FY'25. At the same time, the allocation for the Dedicated Freight Corridor Corporation of India (DFCCIL) has been slashed to Rs 4155 crore from Rs 14,526 crore in FY '24.
The government has announced the implementation of three major economic railway corridor programs aimed at enhancing logistics efficiency and reducing costs. These programs, identified under the PM Gati Shakti initiative, include energy, mineral, and cement corridors, port connectivity corridors, and high traffic density corridors.
Cement companies gave a thumbs up to the Union Budget proposal to develop a cement corridor. The announcement under the railways would help improve logistics efficiencies and boost multimodal connectivity, said the Cement Manufacturers Association (CMA). The industry body counts top players UltraTech Cement, JK Cement, and JSW Cement as its members. "This budget retains its intent to continue the rapid growth momentum keeping the medium and long-term vision sharp. The strong thrust on research and innovation with infrastructure development is a move in the right direction," said Neeraj Akhoury, President & MD of Shree Cement Limited.
By decongesting high-traffic corridors, the operations of passenger trains are expected to improve, leading to increased safety and higher travel speeds for passengers. Additionally, the conversion of forty thousand normal rail bogies to Vande Bharat standards is set to enhance passenger safety, convenience, and comfort. Moreover, the Metro Rail and NaMo Bharat train systems will support the expansion of large cities especially the transit-oriented development.
The FM highlighted that the number of airports in the country have doubled to 149 in ten years. More number of cities are brought under airmap through UDAN Scheme. This has resulted in Indian carriers placing order for over 1000 new aircrafts. The FM further stated that expansion of existing airports and development of new airports will be expedited.
Steel PLI scheme
The central government has proposed to hike the budgetary allocation for the Product Linked Incentive (PLI) scheme for specialty steel to Rs 270 crore, against the allocation of Rs 2.36 crore proposed last year. The revision of allocation comes amid the government's plans to introduce PLI 2.0 in a bid to ensure raw material supply for the steel sector in 2024.While strong infrastructure spending ensures robust demand for the metal, steel companies remain concerned about rising imports and high raw material prices amid geopolitical uncertainties.
In 2021, the Union Cabinet approved the PLI scheme to boost production of specialty steel in India. Under the PLI 1.0 scheme, the government approved Rs 6,322 crore to boost the steel sector. The Ministry of Steel had signed 57 MoUs with 27 companies for specialty steel.
The scheme is expected to generate an investment of about Rs. 30,000 crores and additional capacity creation of about 25 million tonnes of specialty steel in the next 5 years.
Additional Budget Highlights
Rooftop solarization and Green Energy: A slew of measures was proposed for the promotion of green growth and renewable energy including rooftop solarization, through which one crore households will be able to obtain up to 300 units of free electricity every month. Coal gasification and liquefaction capacity of 100 MT will be set up by 2030, which will reduce India's reliance on imports of natural gas and other critical items, curb emissions, and give a fillip to end-user sectors like steel.Electric Vehicle Ecosystem: The Government will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure, and there will be greater adoption of e-buses for public transport, and the networks will be encouraged through payment security mechanisms.
Bio-manufacturing and Bio-foundry: For promoting green growth, the government has proposed a new scheme of bio-manufacturing and bio-foundry, which will provide environment friendly alternatives such as biodegradable polymers, bioplastics, biopharmaceuticals, and bio-agri-inputs. This scheme will also help in transforming today’s consumptive manufacturing paradigm to one based on regenerative principles.
PM Awas Yojana (Grameen): The Government will pay utmost attention to make the eastern region and its people a powerful driver of India’s growth, PM Awas Yojana (Grameen) is close to achieving the target of three crore houses, and two crore more houses will be taken up in the next five years to meet the requirement from the increasing number of families.
Port Connectivity & Tourism: The budget outlined projects for port connectivity, tourism infrastructure, and amenities on the country's islands, including Lakshadweep. “States will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at global scale,” said Nirmala Sitharaman. A framework for rating the centres based on quality of facilities and services will be established. Long-term interest free loans will be provided to States for financing such development on a matching basis.
GST Reduced Compliance Burden: On indirect taxes, Sitharaman said that GST has reduced the compliance burden on trade and industry by unifying the highly fragmented indirect tax regime in India. According to a recent survey conducted by a leading consulting firm, 94 per cent of industry leaders view the transition to GST as largely positive. The budget highlighted the fact that the tax base of GST has more than doubled and average monthly gross GST collection has almost doubled to Rs. 1.66 lakh crore this year.
States too have benefited: States’ SGST revenue, including compensation released to States in the post-GST period of 2017-18 to 2022-23, has achieved a buoyancy of 1.22. The biggest beneficiaries are the consumers as reductions in logistics costs and taxes have brought down prices of most goods and services.
Regarding the steps taken in customs to facilitate international trade, Sitharaman said the import release time declined by 47 per cent to 71 hours at Inland Container Depots; by 28 per cent to 44 hours at air cargo complexes; and by 27 per cent to 85 hours at sea ports, over the last four years.
Key Takeaways
Economic GrowthInfrastructure Spending
- Nominal GDP growth for 2024/25 seen at 10.5% y/y
- Inflation has moderated and economic growth picked up
- Pro-active inflation management has helped contain inflation within the target band (2%-6%)
- Govt says its policies have brought 250 million people out of poverty in the last 10 years
- Allocation for infrastructure for 2024/25 raised to 11.1 trillion rupees ($134 billion), up 11.1% y/y
- Federal govt to allocate 3.86 trillion rupees to States for spending on infrastructure in 2024/25
- Corpus of 1 trillion rupees to be set up with a 50-year interest-free loan for research in sunrise sectors
- Federal govt to allocate 2.55 trillion rupees ($30.7 billion) for spending by railways in 2024/25
- Budget allocations for road transport ministry seen at 2.78 trillion rupees
- Viability gap funding to be provided for offshore wind power
- 10 million houses to get free electricity via rooftop solar programme
- Govt to subsidise construction of 20 million affordable houses in rural areas.
Reaction to Interim Budget FY 24- 25
Manish Aggarwal, Partner and Head – Infrastructure & Disinvestments and Head – Special Situations Group, KPMG India
Despite the limitations of an Interim Budget, the Government has pressed the pedal on the infrastructure sector to drive the journey into ‘Amrit Kaal’. An 11% enhanced allocation of Rs. 11.11 lakh crore has been made towards the sector to support India’s transition into a developed economy. Clean energy transition finds a core place in the budget with the announcement of a VGF scheme for setting up 1 GW of offshore wind projects, implementing rooftop solar on 1 crore households, focus on biofuels via mandated procurement, and gasification/ liquefaction of coal.Three new rail corridors are to be implemented to improve speed of cargo and passenger trains under the Gati-Shakti initiative, which will help reduce India’s high cost of logistics. The real estate sector gets a further boost with focus on ‘affordable housing’ which is becoming a very big challenge. However, it misses out on potential augmentation of budgetary allocation of another 1-1.5 lakh crore annually via brownfield asset monetization. We expect a renewed focus on asset monetization after the elections.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE
This Budget is focused on infrastructure development and scores well on initiatives for women, youth, farmers, and weaker sections of the society. The proposal to add 2 crore additional houses under the PM Awas Yojana (Gramin) over the next 5 years is likely to enable growth in the rural areas. Further, the announcement on housing for middle-class deserving sections would propel the development of real estate and construction activities along with allied sectors.Emphasis on developing tourism in the country is an excellent initiative. With this, numerous tier 2 and tier 3 cities will witness economic development, and the announcements of projects for port connectivity, tourism infrastructure, and amenities will also help in generating employment. Additional emphasis on continued development of airports, will drive more opportunities for the sector.
Vinay Kumar G, Vice President & Sector Head - Corporate Ratings, ICRA Limited
Capital allocation for the Ministry of Road Transport & Highways increased by 3% to Rs. 2.72 trillion in FY2025 BE from Rs. 2.65 trillion in FY2024 RE. Although the growth is modest at 3%, it indicates government’s focus on the road sector and enables the Ministry to meet the completion targets for the Bharatmala and the NIP (National Infrastructure Pipeline). In line with the last year budget announcement, the government continued with nil borrowing program for NHAI while keeping the allocation flat at Rs. 1.68 trillion in FY2025 BE.Mohammad Athar, Partner and Leader CP&I & Industrial Development, PwC India
With an outlay of Rs. 11.11 lakh crore, the Budget has put significant focus on railway corridors to enable logistics cost reduction. Capital expenditure for airport expansions will help in serving the growth needs of one of the fastest growing aviation markets in the world. Likewise, promoting public transport investments across metro, rail, electric buses and regional rail projects will enable urban transformation, decongesting of cities, and driving the decarbonisation agenda for transport.Tourism is a large economic development opportunity for India. Promoting development of tourism sites by states, investments in connectivity infrastructure, and addition of new iconic tourism centres will create economic opportunities across states.
Badal Yagnik, Chief Executive Officer, Colliers India
The Interim Budget was laid on the premises of infrastructure, housing, green energy initiatives and innovation, setting up the foundation for a 6-7% sustained GDP growth in the next few years. The strong 11.1% YoY increase in infrastructure outlay to over Rs 11 lakh crore signals a steady wave of upcoming developments and opening of vast opportunities for all stakeholders, including real estate.The continued emphasis on green growth, particularly through the promotion of electric public transport and charging infrastructure development, further positions India on the path of sustainable and environmentally conscious real estate development. At the same time, the government's emphasis on affordable housing aligns with the broader vision of inclusive and accessible living. Amid positive market synergies in the form of stable interest rates, attractive incentives and increased affordability, domestic investors too are likely to be more upbeat about all real estate segments.
Boman Irani, President, CREDAI
Sustained focus on infrastructure development will further boost growth in the housing sector. However, as the tax rates remain unchanged, the common man will not have additional money in his pocket, which may be a deterrent on the spending capacity of taxpayers.Ajay Singh, President, Assocham
It is an India-first budget that focuses on ensuring that India becomes a 5 trillion-dollar economy by 2025 and a developed nation by 2047. The government has focused on infrastructure, startups, and rail corridors. The FM has also announced Rs1 lakh crore fund for research and development and the startup sector, which is a very significant move.Dr Anish Shah, President, FICCI
The Interim Budget is a clear and outcome-based continuum towards ‘Viksit Bharat’. It brings together growth, climate, and social empowerment, while maintaining a careful balance between current investment rate and fiscal discipline. Enabling States to adopt reforms for Viksit Bharat will seize the momentum created from the Centre towards Amrit Kaal.Focus on Blue Economy, expanding and strengthening the EV ecosystem, domestic tourism, and multi-modal logistics, will propel India towards the vision of a developed nation by 2047. The Interim Budget recognizes Innovation as a key driver for growth through introduction of a significant corpus of Rs 1 lakh crore for offering fifty-year interest free loan to scale up R&D in sunrise domains. The fiscal performance bodes well for country's macro-economic stability and investor confidence.
Vinod Aggarwal, MD & CEO, VECV
The Interim Budget injects renewed vigor into the automotive industry by emphasizing green energy and infrastructure development, with a notable 11.1% increase in capital expenditure. The Budget focuses on sustainable mobility, addressing challenges in EV charging infrastructure, and fostering entrepreneurial opportunities. With our development plans addressing Electric, H2ICE, Fuel Cell Electric and LNG, in addition to CNG and clean diesel, VECV is ready to provide tested alternate fuel solutions in line with the government's Net-Zero vision.Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas
Nuvoco welcomes the initiatives in the latest Interim Budget, which acknowledges the Government's commitment to growing the economy in challenging geopolitical conditions. As part of the PM Gati Shakti program to foster strong multimodal connectivity, three proposed major economic railway corridors focusing on energy, minerals, and cement will improve logistics efficiency and reduce costs. This will benefit both the industry and the economy.In addition, the focus on the Individual House Builders (IHB) segment, particularly the new housing scheme for the middle class, aligns with the nation's socio-economic goals. The initiative to construct two crore houses under the PM Awas Yojana and the progress of the Pradhan Mantri Awas Yojana (Grameen), with an additional two crore homes planned to be built over the next five years, is particularly noteworthy.
The government's efforts to improve port connectivity, decongest high-traffic rail corridors, and transform metro rail are positive developments for the ready-mix concrete industry. These measures should further improve the standard of living for millions of people and offer numerous opportunities for economic and community development.
Puneet Vidyarthi, Head of Marketing & Business Development – India & Saarc, Case Construction Equipment & President, Rural Marketing Association of India
This year’s budget is people-centric with a solemn assurance of collective prosperity and inclusive development. The Direct Benefit Transfer provided by the government to farmers is a strong step that benefits over 11 crore farmers every year. The continued support in providing ‘pakka houses’ in rural India through the PM Awas Yojana is a step in the right direction.Moreover, the Deen Dayal Upadhyaya Grameen Kaushalya Yojana guarantees high quality skill training opportunities for the rural poor to secure a better future. India is home to over 200 million artisans and the sector is the second largest rural employer after agriculture. The continuity of this Yojana not only benefits the artisan community but is also a continuum of Bharat’s rich art and craft culture.
Surajit Bhattacharya, Vice President & Executive Director (Asia), Louis Berger
The interim budget lays a strong foundation for economic growth and resilience through major impetus on infrastructure development. At Louis Berger, we are pleased to see the emphasis on this sector which will be a catalyst in ensuring equitable access and participation in economic opportunities across the nation. We welcome the increase in capital expenditure on infrastructure for the fourth consecutive year to Rs 11.11 lakh core. This will accelerate the efficient use of land resources, enable adequate resources for existing and upcoming urban infrastructure, enhanced availability, and affordability of urban land, and, most importantly, job creation.Rajashree Murkute, Senior Director, Infrastructure Ratings, CareEdge Ratings
In line with CARE Ratings expectations, the Government’s capital investment outlay for infrastructure to be maintained at 3.4% of GDP (2024-25), is in sync with 3.3% of GDP (2023-24). Incremental focus on economic corridors to gain logistic efficiency; green energy initiatives through roof top solarisation, and VGF support for off-shore wind projects augurs well in the pursuit of transforming the nation into USD 26 trillion economy by 2047.Naveen Gadde, Founder and Managing Director, Navaanami Builders
Finance Minister Nirmala Sitharaman's housing announcements in the Interim Budget demonstrate a practical approach. The plan to complete 3 crore houses under the PM Awas Yojana Grameen, with an additional 2 crore in the next five years, is a positive step towards meeting demand for affordable housing. The introduction of a scheme for the middle class acknowledges the need for more accessible home ownership. Overall, it's an encouraging Budget, fostering optimism for a more dynamic and inclusive real estate market.Rajan Aiyer, Vice President & Managing Director, Trimble, South Asia Region
Trimble welcomes the 2024 Interim Budget with its visionary focus on building a New India. The boost in capital expenditure, reaching Rs 10 lakh crore is a noteworthy increase from the previous fiscal's Rs 7.3 lakh crore. This commitment to infrastructure development aligns with Trimble's mission to revolutionize the construction and related industries through cutting-edge technology for speedy, sustainable, and high-quality development. This will indeed be the beginning of Amrit Kaal for national infrastructure development and march towards a $10T economy by 2030.Chandrashekar V, MD & CEO, GMMCO (CK Birla Group)
The Rs 11.11 lakh crore strong infrastructure push, supported by the three railway corridors, as well as the continued focus on housing for the middle class, underscores the government’s unrelenting focus on bolstering domestic infrastructure. This push is expected to spawn its own ecosystem of ancillary players, equipment OEMs, and heavy machinery players.Amit Uplenchwar, Director, Kalpataru Projects
We applaud the government's emphasis on infrastructure development, particularly the PM Gati Shakti initiative involving three major railway corridor programs. This commitment, alongside the substantial increase in infrastructure spending to Rs 11.11 lakh crore for FY25, demonstrates the government's unwavering focus on building a more efficient and connected India.Striking a balance between infrastructure and social spending is crucial for fostering a self-sustainable and inclusive micro and macro-economic development. Furthermore, the focus on leveraging India's natural and human resources through enabling schemes aligns with our vision of making India Atmanirbhar. This holistic approach, coupled with the UDAN scheme's expansion for new airports, directly contributes to building smart, sustainable cities, fostering regional connectivity, and stimulating economic growth.
Manish Mehan, CEO & MD, TK Elevator India
The Government's announcement to build two crore new rural homes under PM Awas Yojana Grameen Scheme, setting up of an Urban Infrastructure Development Fund (UIDF) under the National Housing Bank for the creation of urban infrastructure, signals a robust push for real estate growth, extending its impact beyond metros and creating exciting opportunities in tier-II and tier- III cities. The transportation infrastructure development near metro stations will further foster urban mobility and unlock investment potential.Sebi Joseph, President, Otis India
We applaud Hon’ble Finance Minister, Smt Nirmala Sitharaman for presenting a progressive budget accelerating the momentum in infrastructure sector and for the contribution to affordable housing. The thrust on building digital public infrastructure along with the three major economic railway corridor programmes will enable multi-modal connectivity and help grow demand for new elevators.Vikramjiet Roy, Managing Director, Maccaferri India
We welcome the government’s focus on infrastructure creation which is an economic force multiplier and will lead to a positive cascading effect on ancillary industries, and job creations. The multifarious initiatives to boost agricultural productivity are also significant. This infrastructure push, which entails development of triple railways corridors as well as construction of airports is expected to catalyse investments and spur demand in sectors such as steel, cement, iron ore and transportation.Neeraj AKhoury, Managing Director, Shree Cement
The Interim Budget 2024-25’s thrust on infrastructure is vital to sustain India's growth momentum. We welcome the 11% hike to infrastructure outlay and the lifeline of interest-free loans for 50 years to states. The three new major railway corridors will also fuel economic progress. The rural housing push and support for urban middle-class housing empower communities, making them bhagidaris in the $7 trillion economy that India will be in by 2030. This Budget sets the policy direction that will enable India to step into an era where it steers global discourse and decision-making as a Viksit Bharat by 2047.Vihang Sarnaik, Director, Vihang Group
A critical facet of my expectation from the Budget was the re-evaluation of affordable housing criteria. I was expecting that the Honourable Finance Minister would find some merit in establishing a separate affordable housing index for each Tier-1 and Tier-2 cities with impetus to the housing affordability in key metro cities and their peripheries.While considering the affordability of housing, it was essential to consider factors such as inflation, land cost, construction cost, approval cost, and labour cost for defining affordability in housing. For instance, in the case of Mumbai, where housing costs are notably high, we thought that the interim Budget would increase the price ceiling on affordable housing from ₹45 lakhs to ₹90 lakhs so that the whole affordable scheme benefits a large chunk of people living in the unorganised sector. As per the current affordable housing scheme, the limit is set at ₹45 lakhs and you will not find a single home in Mumbai in that price bracket. So, the scope of availing the full benefit of credit link subsidy under PMAY is non-existent in Mumbai.
Arun Shukla, President & Director, JK Lakshmi Cement
We applaud the Honourable Finance Minister for crafting the visionary Union Budget 2024-25, a blueprint for fostering growth, sustainability, and inclusivity. The Government's strategic focus on all forms of infrastructure, be it digital, social, or physical, strong emphasis on women's empowerment, the significant increase in infrastructure outlay to Rs. 11.11 lakh crores, and the emphasis on green growth, shows the Government's pursuit to propel our nation towards economic excellence.We also applaud the Government's efforts to deepen GST reforms, creating a more unified and efficient tax regime. This, coupled with initiatives like the bio-manufacturing scheme, and multi-modal connectivity projects, creates a favourable environment for sustained economic growth and job creation.
Sminu Jindal, Founder & Chairperson, Svayam, and Managing Director, Jindal SAW Limited
According to the 2011 census, over 2.21% of the Indian population and globally 16% of the world population consists of persons with disabilities. The Government’s focus on social inclusivity in development and increase in infrastructure spending by 11.1% has given us the much-needed encouragement to promote accessible infrastructure in India. We hope that in the coming years, all new development projects adopt the universal design guidelines and build homes, public buildings, and spaces that are truly accessible for all.Additionally, as 40,000 rail bogies are set to be converted to Vande Bharat coaches in the coming years, we hope that special attention will be given to making these coaches accessible for people with reduced mobility, including those with disabilities, senior citizens, and pregnant women. Furthermore, with a boost in domestic especially spiritual tourism, medical tourism, port connectivity, tourist infrastructure, and amenities, we believe not only would it push the economy but also take ‘Accessible Tourism’ forward.
Sanjeev Srivastva, Chairman & Founder, Assotech Group
As the Union Finance Minister unveiled the Interim Budget, stakeholders from the real estate sector lauded the announcements for addressing both immediate and long-term goals, catering to various segments of the population. The commitment to the PM Awas Yojana Grameen, with the target of constructing 2 crore additional houses, reflects a significant investment in infrastructure development. Achieving the milestone of 3 crore houses under the rural housing scheme and setting an ambitious target for the next 5 years showcases a robust commitment to addressing the basic need for housing.Furthermore, the reduction in compliance and relaxation of regulatory provisions signal a welcome move towards ease of doing business. The focus on infrastructure upgrades and building connectivity across the country is a notable move that will benefit real estate growth not just in the top cities but also in tier 2 & 3 cities across the country. Overall, the Interim Budget lays a robust foundation for India's growth, with comprehensive measures to address key sectors of the economy and foster innovation and entrepreneurship.
Rohit Saboo, President & CEO, NEI (CK Birla Group)
The decision by the government to boost rail connectivity through the three corridors will have a positive cascading effect on ancillary industries. Component and bearing manufacturers will have an important role to play in taking this initiative forward. The proposed conversion of 40,000 standard bogies to Vande Bharat bogies further underscores the government’s infrastructure push in the railway mobility sector. Further, with the Rs 11.11 lakh crore infrastructure push, we foresee demand growing for construction bearings.Pradeep Misra, CMD, Rudrabhishek Enterprises Limited
Though it was an interim budget having limitation in its scope, it certainly provides a directive. This is highly encouraging to see that the thrust on building infrastructure has continued in this budget also. The Capex target increase by 11% will directly boost the entire infrastructure sector. Expanded network of Metro Rail, Namo Bhaarat, Airports & Tourist hubs will have a spiral effect on all other ancillary industries. Several connectivity corridors including port, cement, and energy should be highly impactful, depending on the speed with which they are rolled out.The MSME sector will be little disappointed because the sector was looking forward to policy announcements helping them in ease of regulatory procedures, reducing compliance burdens and provide greater access to loans. However, the plans to provide training in order to compete globally will definitely help the MSMEs which are aiming to become Indian MNCs. It must be noted that MSMEs contribute nearly one third of national GDP and account for nearly 40% of exports. Hopefully, the following budget will have focused policy intervention to promote this segment.
The Real Estate sector will also have to wait for some time before the government looks into the rationalization in the GST rates for building materials. The entire industry is under severe pressure of fund availability, margins, and cash flow, which the budget was expected to address.
Considering that it was an interim budget, the Hon’ble finance minister has maintained an excellent balance between the growth targets, infrastructure development, sustainability goals, and concerns of common people including farmers, women. and young entrepreneurs.
Aakash Patel, Director, Atul Projects India
The Interim Budget offers a mix of continuity and new initiatives, reflecting a blend of optimism and practical considerations in the face of India's current economic landscape. The Government's focus on the youth reflects a strategic move to harness the potential of India's demographic dividend. This focus could lead to policies that not only empower the youth through education and skill development but also fuel innovation and entrepreneurship.The proposed scheme to assist the middle class in acquiring or building their own homes is a significant step. While the lack of direct tax benefits for homebuyers might be a point of contention, the government's focus on infrastructure and the new housing scheme for the middle class are steps in the right direction.
Extending tax benefits to start-ups for an additional could significantly impact the Indian start-up ecosystem as it will provide the much-needed support to budding entrepreneurs and emerging businesses, encouraging innovation and risk-taking. Furthermore, this move could have a positive ripple effect on the commercial real estate sector, potentially leading to its rejuvenation.
Jash Panchamia, Partner, Suraksha Group
We applaud the Government’s focus on the development of affordable housing in the interim Union Budget 2024. As families grow, we anticipate an increase in the demand for housing by building two crore new houses in the next five years. The revolutionary scheme empowers the middle class, which resides in rented houses, slums, and unauthorized colonies, to buy or build their own homes. This also emphasises on the fact that the Government’s focus has been in providing a respectable lifestyle to the economically weaker section of the society. It is also commendable that our Hon’ble Finance Minister focused on providing free electricity to one crore families.The development of real estate will also further boost employment for the youth of the country, which will create an upward trajectory for the country’s economy. The budget reflects the commitment to inclusive growth, sustainable living, and fostering opportunities for the next generation.
Sarveshaa SB, Chairman & Managing Director, BHADRA Group
The interim budget is a forward-looking move that shows a detailed plan to take India's economy into a new era of prosperity and growth. For the real estate industry, a standout provision is the initiative to empower the middle class residing in rented homes, slums, and unauthorised colonies, enabling them to purchase or construct their own houses. Putting more focus on transit-oriented development and expanding metro train systems in cities are two examples of a comprehensive approach to urban planning. The budget's focus on strengthening the ecosystem for electric vehicles is also in line with global trends. This offers a long-term answer for travel and helps cut down on carbon emissions.It is clear that the Government's focus on infrastructure, spending, and housing is a key factor that has led to strong economic growth. This vision is in perfect harmony with the ambitious objective of making India a developed country by 2047. Moreover, the goal of reaching Net Zero emissions by 2070 is a good step towards protecting the earth. When put into action correctly, the steps listed will create cities that are both economically successful and environmentally friendly.
Zaiba Sarang, Co-founder, iThink Logistics
In essence, the Interim Budget 2024 paints a vibrant canvas for e-commerce and logistics. The government is charting a golden age of growth and competitiveness in these pivotal sectors by addressing critical bottlenecks and fostering innovation. The substantial 11.1% boost in the infrastructure budget, coupled with ambitious initiatives like PM Gati Shakti and the India Middle East Europe Economic Corridor, marks a pivotal moment for the industry.The government's commitment to efficient, cost-effective freight movement and connectivity sets the stage for reduced logistics costs, accelerated deliveries, and heightened competitiveness for Indian businesses, particularly in manufacturing. The strategic approach towards Amrit Kaal to foster sustainable growth, facilitate inclusivity, and improve productivity while creating opportunities and training for MSMEs to compete globally, is truly commendable.
Nishith Rastogi, Founder & CEO, Locus
We commend the forward-thinking approach of the 2024 Interim Budget, which resonates with our aspirations for India's logistics sector, in particular. The Union Government’s commitment to increasing infrastructure spending by 11.1%, around 3.4% of the GDP, signifies a robust investment in the sector's future. In addition, the PM Gati Shakti and The India Middle East Europe Economic Corridor stands to greatly improve both national and international trade and commerce with the backing of a strong infrastructure. This aligns with our vision of a technologically integrated and globally competitive Indian logistics industry.Equally commendable is the focus on achieving net-zero targets for 2070, and the adoption of electric vehicles and e-buses, supported by improved manufacturing and charging infrastructure. These initiatives demonstrate a comprehensive strategy for modernizing logistics with an emphasis on environmental sustainability.
Ajay Chaudhary, CMD, Ace Group
In this interim Union Budget, we find notable provisions that resonate with the aspirations of the middle-class homebuyers. Equally commendable is the budget's emphasis on bolstering infrastructure development, with a remarkable increase in allocation by over 10 per cent, reaching approximately Rs. 11 lakh crore. This surge in investment promises a multiplier effect, igniting economic growth engines and paving the way for substantial employment opportunities.Arjunpreet Singh Sahni, Executive Director, Solitaire Group
The Interim Budget’s provisions for affordable housing and infrastructure development align with industry expectations. However, granting Industry Status to the real estate sector, a long-awaited demand, would have further stimulated growth. While we appreciate the measures taken in this Budget, we believe that more can be done to provide a significant impetus to the real estate sector with additional incentives and policy support for developers and homebuyers. We look forward to effective implementation of the measures outlined and hope to see positive outcomes percolate to all stakeholders in the real estate sector.Rajinder Kaul, Chairman & Managing Director, Sharika Enterprises
We welcome the measures for infrastructure development and technology adoption in the Interim Budget. Moreover, last year’s massive allocation to renewable energy has already boosted the sector. But we believe that the Budget could have done more to address certain pressing challenges in the power sector. For example, there is a need for greater investment in grid infrastructure to support the integration of renewable energy sources. Additionally, more incentives for the adoption of energy-efficient technologies are the need of the hour. We hope that the government will continue to prioritize these areas in future budgetary allocations to accelerate growth of the power sector.Sanchit Sekhwal Goyal, Director, Su-Kam Power Systems
We are very pleased to find that renewable energy has been a focus area for government spending in the Interim Budget. The comprehensive plan aimed at achieving the nation's ambitious Net Zero target by 2070 is encouraging and will steer the country towards a greener future. The honourable Finance Minister's push for rooftop solar energy by providing assistance for the installation of rooftop solar systems for one crore households under the Pradhan Mantri Suryodaya Yojana will spur demand in the industry, and more and more people will be encouraged to opt for renewable energy.Dr. Darshan Rana, CMD, Erisha E Mobility
The focus of the Hon’ Finance Minister on promoting electric mobility through greater adoption of e-buses, is truly encouraging for the EV industry and will equally support sustainable transportation solutions. However, there are certain areas where we believe the Budget could have been more encouraging. For instance, a more robust policy framework for the adoption of electric vehicles and announcements on related infrastructure development would have been more beneficial for the industry. Greater incentives for EV manufacturing, research and development activities would further accelerate growth of the EV industry.Dr. Sanjay Gupta, Chairman, Ramagya Group
I am all praise for the Interim Budget’s emphasis on skill development. While presenting the Budget, the Hon’ Finance Minister recognized the importance of skill development in fostering economic growth and spreading awareness about gaining education. It will play a decisive role in advancing the sector. However, greater investment in research and development to support innovation in education technologies was very much desirable. Additionally, more initiatives to promote digital literacy and online education platforms could further enhance the sector's growth potential.Sandeep Bansal, Chief Business Officer, Falcon Autotech
Following the Interim Union Budget presented by the honorable FM, we welcome the commitment to de-congest high-traffic corridors, which not only aligns with our goals of efficiency and cost reduction, but also sets the stage for fostering a skilled workforce. With the government's visionary approach with PM Gati Shakti, and the heightened focus on multi-modal connectivity, we foresee abundant employment opportunities for the youth with technical skills in manufacturing, installation, and maintenance.The proposed rail corridors in the eastern region, the strategic India Middle East Europe Economic Corridor, and the expansion of EV infrastructure, are forward-looking measures for economic growth and environmental responsibility.
Mazhar Syed, Director, Asmita India Realty
The swift advancement of infrastructure, spanning physical, digital, and social aspects, indicates an era of unparalleled progress. Every part of the country is actively contributing to economic growth. In the 21st century, Digital Public Infrastructure becomes a crucial element in production, significantly contributing to the organization of the economy. Our vision for 'Viksit Bharat' is that of a Prosperous Bharat in harmony with nature, with modern infrastructure, and providing opportunities for all citizens and all regions to reach their potential. As we construct, connect, and introduce new ideas, our collaborative endeavors are molding a future where comprehensive growth flourishes on a sturdy and interconnected infrastructure.Harshvardhan Tibrewala, Director, Roha Realty
The Budget 2024 signals a bold stride towards 'Viksit Bharat' with an 11.1% increase in infrastructure expenditure, reaching ₹11,11,111 crore, or 3.4% of the GDP. This boost underscores the government's commitment to economic growth and widespread employment.The vision for 'Viksit Bharat' envisions a prosperous nation with modern infrastructure and opportunities for all. This aligns with the real estate sector's growth, promising increased property values as infrastructure improves. Real estate investors can anticipate a positive impact on property markets, making strategic investments more appealing in the coming year.
Sachin Patel, Chief Managing Director, Swaminarayan Group
The government's commitment to infrastructure through 'Viksit Bharat' in the budget 2024 shines a beam of hope on the growth of the real estate sector. The government has allocated 11,11,111 crore rupees which is an 11.1% increase from the previous year proclaims their commitment to increase economic growth and boost employment creation. This substantial investment, constituting 3.4% of the GDP, promises a multiplier effect that will undoubtedly stimulate the real estate market.The vision of 'Viksit Bharat' is Prosperous Bharat is "Prosperous Bharat in harmony with nature, with modern infrastructure, and providing opportunities for all citizens and all regions to reach their potential”.
Emphasizing the transformative impact of the Atal Setu (Mumbai Trans Harbour Link) Bridge on Industry growth, there is a pressing need for the government to prioritize more such infrastructure developments to unleash substantial economic potential.
