The industries reacted with joy, enthusiasm, skepticism, and caution to the Finance Minister Nirmala Sitharaman’s Budget proposal 2021-22. Overall, there seems to be a “thumbs-up” from both practitioners and analysts. Here is what they are saying:
Mohammad Athar(Saif), Partner, Economic Development and Infrastructure, PwC India
The budget has focused on bringing safety, quality and clean transport to the front by announcing a slew of initiatives. The voluntary scrapping policy announced in the budget will, for the first time, bring fitness test as a criteria for scrapping old vehicles. Over one crore light, medium and heavy commercial vehicles with an age of more than 15 years have been plying on Indian roads. The policy will enable shifting of older to new vehicles which will be safer and cleaner, and reduce road accidents.
The scheme to support public bus transport with an investment of Rs 18,000 crore will be critical to enable public transport mobility in Indian cities and reduce ownership of private vehicles in urban areas. Electric and cleaner public bus transport could change the urban transport landscape of the country, and bring in the much-needed quality of life for daily workers who depend on public transport as a critical enabler of their livelihood. Bus transport has remained one of the largest sources of public transport mobility, and the government's commitment to the sector will enable transitioning of the old fleet to new technology driven mobility in Indian cities.
Alternate models of mass transit in the form of metro lite, and metro neo will appeal to cities with narrower right of ways and with higher urban density. The continued investment focus on Kochi, Nagpur, Nashik and Chennai metro will enable completion of various project phases, and investment in the Bengaluru suburban railway network will bring relief to urban transport challenges in the IT and R&D hub of the country.
Madan Sabnavis, Chief Economist, CARE Ratings
The budget in a limited manner has provided some boost to industry through higher capex in roads and railways. This will have a virtuous backward linkage with industries such as construction, steel, cement etc, and help to revive their prospects too. The important thing is the continuation of such expenditures to ensure the sustenance of the growth process. The Budget has not given much on taxation which is a disappointment as a lot was expected to boost consumption and savings. But this has not been done and the focus has been on expenditure only. The fact that there is no hurry to get back to the path of fiscal prudence is encouraging.
Prabhajit Kumar Sarkar, MD & CEO, Power Exchange India Limited (PXIL)
The Union Budget for 2021-22 presented by the Finance Minister Nirmala Sitharaman today, has given a big push to the power sector by announcing close to Rs 3.06 lakh crore power distribution sector scheme.
We welcome this move as it is expected to assist discoms for infrastructure creation tied to financial improvements, including prepaid smart metering, feeder separation and upgradation of systems. Additionally, the government’s proposed framework to give consumers more than one discom choice was a much-needed move. It will help to enhance efficiency in the power distribution sector, induce fair competition and address the monopoly business of discoms.
Besides, we foresee that reforms such as Rs 1,500 crore allocation for the renewable energy sector, 100% railway electrification and expansion of metro rail networks and hydrogen energy mission for generating hydrogen out of green-powered sources will contribute significantly in enhancing the country’s power demand. PXIL, as a national power market infrastructure institution welcomes the budget announcement and is ready to provide an efficient platform for enhanced volume of trading and efficient electricity price discovery in the country.
Niranjan Hiranandani, National President, NAREDCO; and MD, Hiranandani Group
It is a “get well soon” type of budget, the V-shaped recovery being powered by the Covid-19 vaccination programme. On real estate aspects, the proposals for the annual budget reinforce the Government’s focus on affordable housing. For the home buyer, the second extension of the deadline till 31 March 2022 for the additional Rs1.5 lakh tax deduction given on loans taken to buy a house in an affordable housing project is welcome, as is the developer whose affordable housing projects also get an extension for tax benefits, for projects completed till 31 March 2022. Similarly, tax exemption for notified affordable housing for migrant workers, and the deduction on payment of interest for affordable housing being extended by a year will give a fillip to this emerging segment. As affordable housing attracts only 1% GST and Rs 1,000 stamp duty in the state of Maharashtra will augment the production of affordable housing in the state. The enhanced spending on public infrastructure projects like ports, railways, airports, warehousing, gas pipelines, metro, economic corridors is laudable and welcomed by industry that will give impetus to the employment generation and attract the essential investment to lift up the economic revival.
The strong focus on digital covering setting up of a Fintech hub at Gift City, seen in sync with moves to enhance digital payments and use of Artificial Intelligence and Machine Learning etc. in governance, will give a fillip to creation of Digital India.
Given the challenged scenario, the proposed annual budget has been largely positive, no major taxation enhancement is something that is welcome. As the Prime Minister pointed out last year saw mini budgets across the pandemic impacted time frame; the unsaid thing for most industries across the economy is that similar steps may happen with more positives in the offing. Continued focus on 'minimum government, maximum governance' will enhance 'ease of doing business', this government spending will provide stimulus for GDP growth, and is laudable.
Vimal Kejriwal, Managing Director & CEO, KEC International Ltd.
The 2021 budget is a budget for an Aatmanirbhar Bharat; a forward-looking budget focusing on construction and capex-led economic recovery. Significant allocation towards creating a future-ready Railway system, 100% Railway Electrification by 2023, focus on DFCs and Urban Infra, including new Metro projects and emerging technologies, infra creation for Power Distribution companies, expansion of Gas Distribution network to 100 new cities, thrust on Renewables, developing one lakh Digital Villages through BharatNet, and the creation of a Development Financial Institution for infrastructure financing augurs well for KEC International Ltd.
Anshul Singhal, Managing Director, Welspun One Logistics Parks
Government’s focus on capital expenditure and infrastructure development will be a shot in the arm for the warehousing and logistics sector in the country. The proposed Development Finance Institution will act as a provider, enabler, and catalyst for infrastructure financing. Also, the budget has earmarked a sharp increase in capital expenditure at Rs 5.54 lakh crore in 2022, from Rs 4.39 lakh crore in 2021. A planned boost to road infrastructure across the country and seven port projects will aid in job creation and income generation. Overall, the large-scale infrastructure augmentation coupled with asset monetization program of core infrastructure assets will go a long way in realising the national infrastructure pipeline, thereby benefiting the logistics sector.
Himanshu Chaturvedi, Chief Strategy Officer, Tata Projects Ltd
We believe that robust infrastructure is a prerequisite for national development, economic growth and improving the lives of citizens. Hence, it is good that the government has reiterated its commitment to achieving targets laid out under the national infrastructure pipeline. But creation and augmentation of infrastructure requires long term financing at reasonable rates. The setting-up of a professionally managed Development Financial Institution with targeted lending portfolio of Rs 5 lakh crore within three-years is therefore a welcome move since it shall act as a provider, enabler and catalyst for infrastructure financing.
The sharp increase in capital expenditure to Rs 5.54 lakh crore which is 34.5% more vis-à-vis current year showcases that the government’s focus is upon infrastructure and allied sectors. In addition, the Rs 2 lakh crore being provided to states and autonomous bodies for their capital expenditure will further reinvigorate infrastructure creation at the state governmental level across India. This is especially important since the financial health of states and autonomous bodies have been hit badly due to the pandemic thereby restricting their ability to upgrade and augment infrastructural amenities.
Focus on national highway corridors, railway lines including electrification, and metro rail lines will lead to easier and cost effective transport of people and goods across the nation. The Rs 287,000 crore Jal Jeevan Mission (Urban), which aims at universal water supply in all 4,378 Urban Local Bodies with 2.86 crore household tap connections, as well as liquid waste management in 500 AMRUT cities will provide enormous opportunities in this important sector.
The AtmaNirbhar Bharat–PLI scheme, wherein the government has committed nearly Rs 1.97 lakh crore, over five-years starting FY 2021-22, will be a gamechanger, especially since it will provide a major fillip to construction of industrial and manufacturing facilities – both greenfield and brownfield. Continuation of tax benefits for affordable housing and tax exemption to rental housing will spur
activity in the realty sector thereby providing support to a key industry and creating thousands of new jobs.
The long term prospects of India’s construction and infrastructure sector was always good because the nation needs better and augmented infrastructural amenities. With the impetus provided in this budget through policy and financial support – it will usher in higher growth across the construction and infrastructure sector.
Warren Harris, CEO & MD, Tata Technologies
With a significant outlay on Infrastructure spend and the much-needed Vehicle Scrappage policy, the government of India has finally set the tone for recovery of Auto Sector which has been significantly impacted by the pandemic. This will not only help boost the demand for production of Commercial vehicles but also support the entire transportation ecosystem. Also, while it would have been good to see some more initiatives to promote Electric Vehicles in this budget, we are glad that the government has noted India’s critical role in the global automotive supply chain post Covid-19. Specific initiatives through Production linked schemes, creation of infrastructure for R&D and enabling skill development in new-gen technologies such as artificial intelligence (AI) and Machine Learning (ML) will help drive investment in Engineering and Research.
Paul Wallett, Regional Director for Trimble Middle-East and India region
Budget 2021 announcement is focused on the nation’s growth and brings a positive sentiment to the overall economy. The announcement of Increased capital expenditure, allocation of Rs 2,000 crore for DFIs and push into asset recycling will put the Indian infrastructure industry in a route to recovery. We believe that prioritisation of government spending on infrastructure promises to be the much needed push for economic revival.
Ramesh Palagiri, MD, Wirtgen Group India
Increase of over 35% Capital Expenditure for Infra Sector with major portion going to Road Sector & the launch of National Monetization pipeline for brown field projects , are major highlights of budget from Road Sector point of view
Rama Kirloskar, Director, Kirloskar Brothers Ltd.
This budget assumes greater significance as it comes amid the Covid-19 pandemic, which has led to a massive economic disruption in India and around the world. The government’s aim to spend Rs 1.97 lakh crore on various PLI schemes over the next five years, is a step in the right direction. This move is likely to attract global players in the Indian manufacturing sector as the government is planning to offer plug-and-play infrastructure. The special focus on manufacturing will also assist in augmenting Foreign Direct Investment (FDI) in this sector which is undoubtedly the need of the hour.
The announcement to extend social security benefits to gig and platform workers is also a significant move considering that it now forms an important part of the economy. Minimum wages to all categories of workers will ensure economic development of the blue collar workforce and will impact around 15 million gig workers in India. The move to allow women to work in all categories and also in night shifts with adequate protection will ensure more participation of women in the workforce and further boost economic development.
The Budget 2021 also addresses the needs of the unorganised labour force, with the proposal to launch a portal to collect relevant information on gig workers, building/construction workers, among others. This will help formulate health, housing, skill, insurance credit and food schemes for migrant workers. This proposal is indeed required to make India’s workforce future ready.
Kshitish Nadgauda, SVP and MD-Asia, Louis Berger
As the backbone of any economy, impetus to infrastructure is one of the key tools to give the economy a solid boost. It is one of the surest ways for an economic rebound, especially after the global health crisis which has slowed down and crippled many economies. Infrastructure has been a key focus area of the government. It was therefore encouraging to see it amongst the top two pillars of the Budget for FY 21-22 as announced earlier today by the Honorable Finance Minister, Ms Nirmala Sitharaman.
In particular, we welcome the focus on continued investment in the development of urban mass transit (Metro Rail) projects in India. Such mass transit projects are vital to realize multiple benefits such as reduction in air pollution, time saving for commuters, reduction in accidents, reduction in traffic congestion, fuel savings, etc. The announcement of the central fiscal funding for Metro Rail projects showcases the government’s continued focus on Metro connectivity. We welcome this move and believe that this will lead to building safe, world-class transportation facilities which would be availed of by the common man.
We also welcome the proposals of the continued development of Economic Corridors. These road and highway projects will boost the economy by creating thousands of jobs that are much needed during these times and attracting greater investment along the corridors because of the improved infrastructure. Additionally, the soon to be tabled bill on DFI (Development Financial Institution) is a much awaited step which will provide funding to construction in the Infrastructure sector. Additionally, we welcome the announcement of the new 11,000 km of proposed roads and highways in the states of Tamil Nadu, Kerala, Assam and West Bengal. We would urge similar investment in other states.
George Rajkumar, Country President, Grundfos India
Grundfos India welcomes the additional allocation towards the Jal Jeevan Mission (JJM) by the Department of Drinking Water and Sanitation announced by the honorable Finance Minister. Given that the budget had a very sharp focus on sustainable economic growth of and nation overall, it was great to see the focus on one of the crucial issues, that is urban water supply. Keeping the growing water crisis in mind, the decision to dedicate a Rs 2.87 lakh crore outlay over 5 years, for the renowned JJM, which is aimed at universal water supply in all 4,378 urban local bodies, with 2.86 crore household tap connections and liquid waste management in 500 AMRUT cities is a good one. The move to include liquid waste management backed by the budget allocation of Rs 141,678 crore for Urban Swachh Bharat Mission 2.0 is a great step forward to holistically look at sustainable water and waste water management in India. We hope that this allocation will encourage public and private players to develop innovative solutions for JJM and provide an opportunity to contribute to resolving water issues in the country through advanced water technologies. Furthermore, knowing the fact that we are rich in renewable sources, it is a rational decision to evidently level up the renewable energy allocations, by proposing an additional infusion of Rs 1,000 crore to the Solar Energy Corporation of India and Rs 1,500 crore to IREDA continuing to build on a solarised future.
Prem Kishan Dass Gupta, CMD, Gateway Distriparks
The Union Budget 2021-22 placed key focus on healthcare, infrastructure, digital economy and job creation for the youth. The announcement of massive investment of Rs 2,000 crore on seven port projects under PPP mode will boost the logistics sector and enable overall economic growth. Under the Recycling Act, 2019, a recycling capacity of around 4.5 Million Light Displacement Tonne (LDT) will be doubled by 2024. This will not only benefit us as a company but also be a way of providing employment opportunities.
With road and rail connectivity being an indispensable factor of economic development, an allocation of Rs 110,055 crore for Railways has been made where the eastern and western dedicated freight corridors will be commissioned by June 2022. This will help in bringing down the logistics cost as well as ensure smooth connectivity between different points of the country and ensure easy and faster freight movement. The Union Budget targets 100% electrification of broad gauge railways to be achieved by 2023. This will increase efficiency, and reduce dependence on conventional fuels.
The government’s push to port, road and rail infrastructure through various investments, initiatives and projects will further add to the development of the logistics industry in India.
Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure Limited
The lockdown in 2020 and its subsequent continuation in 2021 has caused lot of disruption and set back to the economy as well as the real estate sector. The Government therefore had to focus on providing relief to people and the industry. We welcome the Government’s intent to deliver a growth oriented budget. However, we had expected the government to do more for the sector because of the multiplier effect it has on the economic growth. The Government’s measures in 2020 have only provided some relief. The budget provided an opportunity to consider lowering GST on building materials, no GST on JDA and TDR, extended the tax benefit from affordable to mid housing would have made a significant impact. Additionally, allocating additional capital for distressed funds could have eased the liquidity needed for last mile funding, allowing FDI in ready to move in inventory to unlock capital and provide for liquidity to NBFC, Banks and Developers.
Acknowledging the role of NRI homebuyers and increased interest amid the pandemic, the government’s decision to reduce NRI residency limit will help. Raising customs duty on solar inverters to 20% from 5% is likely to add to the cost of the commercial and residential developments while monetisation of land is likely to provide more land for development and arrest its rising cost.
For the investor community, we are pleased with the proposal to make dividend payments to REITs (Real estate investment trusts) and INVITs (Infrastructure investment trusts) exempt from TDS. The Indian real estate sector is at an interesting juncture and I strongly believe REITs will define the future as they allow investors to expand their range of properties. The Finance Minister’s plan to introduce a Bill to set up a DFI (developmental financial institution) for long-term funding infra projects with a capital of Rs 20,000 crore and lending Rs 5 lakh crore in the next 3 years is a great move for India’s sustainable infrastructure. We look forward to working with the government for these crucial infra projects by leveraging the Tata brand to contribute to India’s exciting growth story.
Sankey Prasad, FRICS, Chairman & MD (India), Colliers International
Overall the proposed Union Budget for FY 2021-22 is positive as it is driven primarily by an impressive 34% increase in capex investments in the construction and development of real infrastructure. These investments will spur large scale construction activities, which will create many more jobs, generate more income and boost overall demand in the economy. Not burdening the citizens and businesses of the country with additional taxes is very welcome and will go a long way in strengthening confidence in our economic recovery. We are hopeful that proper and quick implementation of the Government’s aim to disinvest, privatise and monetise assets will also improve the overall business sentiments and environments. These initiatives will bring in large volumes of private investments from abroad where there is high liquidity.
However, there were no specific announcements to boost the ailing real estate sector, other than the extension of incentives for interest payment on affordable homes by another year, tax incentives for notified affordable rental housing and some tax relief for dividends received from REITS. The sector needs to be nurtured in-toto for its contribution to GDP specifically, but more importantly, for being a necessary input in all economic activities.
Rajeshwar Burla, Vice President, Corporate Ratings, ICRA
FY2022 remains a crucial year for two reasons: a) the importance of Government spending on infrastructure to revive the economy and b) the significant catch up required in the ongoing Bharatmala and allied programmes. In this backdrop, the massive increase in the budgetary allocation towards capital spend for ministry of road transportation and highways by 32% to Rs 108,230 crore in BE FY2022 bodes well for the road sector. Including the IEBR (market borrowings) and asset monetisation proceeds for NHAI, the total capital outlay increased by 35% to Rs 198,230 crore in BE FY 2022 from Rs 146, 975 crore for BE FY2021.
Ravichandran Purushothaman, President, Danfoss India
The Union Budget 2020-21 heralds a positive turn in the infrastructure ecosystem of the country. The proposed investment on various infrastructure development projects under the National Infrastructure Pipeline will set India on the right path towards improving the ease and standard of living across major Indian cities. Further, the investments in infrastructure will be pivotal in enhancing the nation’s manufacturing prowess, thereby acting as a catalyst in India’s journey towards becoming a powerhouse for local production.
The allocation Rs 1000 crore and 1500 crore for the solar and renewable energy sectors respectively is indeed a commendable move by the centre for achieving the nation’s targets for Renewable Energy. The budgetary allocations towards reducing air pollution is a welcome step as it will incentivise firms to invest in low carbon technology and fasten their transition towards carbon neutrality.
Added to this, the National Skill Development Agency’s special emphasis on infrastructure-focused skill development and the move to include young engineers in the Project Preparation Facility for upcoming projects, will play a pivotal role in addressing the issue of skill gap and job creation among the nation’s workforce.
Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory
It’s a pragmatic and forward looking budget, at the same time. The estimated, gradual reduction in the fiscal deficit from 9.5% to under 4.5% by 2024-25 will help boost consumption in the economy. The government’s big bet on infrastructure is bound to pay off in the long-term and will also catapult desired growth for real estate and the economy. The non performing assets (NPAs) of public sector undertaking (PSU) banks have seen an encouraging reduction from Rs 8.96 trillion to Rs 6.8 trillion by end of fiscal 2020. The setting up of ARC and AMC for banks troubled with bad loans and NPA’s alongside the further recapitalisation of Rs 20,000 crore will help improve the lending capacity of the banking and financial sector. The government’s decision to extend tax holiday for affordable housing projects by another year is a step in the right direction to realise the PM’s dream of ‘Housing For All by 2022’.
Deepto Roy, Partner, Shardul Amarchand Mangaldas & Co
A development finance institution (DFI) was the need of the hour for the infrastructure sector. The sector needs a long term source of funds and the banks have a significant liquidity issue. Therefore the introduction is a welcome one. However this is a concern around the source of fund. Unless the DFI has access to a cheap international source of funds it may meet the fate of previous attempts at securing institutional long term funds in the past.
Ashok Mohanani, President, NAREDCO Maharashtra
The government has put their best efforts to put the economy back on track after the adverse effects of Covid-19 pandemic that the entire country went through. It has focused a lot on infrastructure in this budget. This will indirectly help boost the housing demand especially in the Tier-2 and Tier-3 cities.
The Government's decision to further infuse Rs 20,000 crore for public sector banks will help address liquidity issues to a large extent. The proposal to extend the Rs 1.5 lakh benefit on interest paid on affordable housing loans by one year to 31 March 2022 is an exceptional move which will boost the affordable housing segment and help to achieve the Prime Minister's vision of Housing for All. It will also ensure that more and more homebuyers get to avail this benefit. The reduction in tax burden on senior citizens above 75 years will give a push to the senior-living projects.
Also, the government's continuous efforts to promote ease of doing business and digitisation will help the real estate sector business in a long way going forward. As anticipated, it's a very futuristic budget from the economy point of view.
Rajesh Neelakanta, ED & CEO of BVC Logistics
“The logistics industry was looking forward to this year’s budget speech. We were expecting an update on the long-awaited National Logistics Policy. However there have been some hits and misses for us. Certain good points to look forward are reduction in timelines for reopening of assessments from six years to three years. Businesses can now breathe relatively easy because of this announcement. Boost to infrastructure development by allowing TDS exemption for investments into InVits. Rationalising custom duties on gold and silver is a welcome move. The focus on logistics through the development of road and highway projects will encourage economic transformation and seek to improve connectivity that is much needed for the growing economy.”
Dhruvil Sanghvi, CEO, LogiNext
“We welcome the incentives proposed by Honourable Finance Minister Ms. Nirmala Sitharaman. Strengthening global and national supply chains is of paramount importance for economic growth. The proposals to set up freight corridors across the country, as well as the proposal for a future ready rail system, along with development of national highways will bridge the gaps that currently exist, bringing in better connectivity between production and consumption markets. Furthermore, the push towards digitisation along with proposals of the one year tax holiday for startups and extending cap gains tax exemption for investment into start-ups shows the intent towards making it easier to do business in India and push forward on the technology wave.”
Aditya Vazirani, CEO, Robinsons Global Logistics Solutions
The 2021-22 union budget was a highly anticipated one, given the current economic situation and the global environment of volatility and uncertainty, and I would say it has delivered well, given the background. While this budget comes at the heels of the mini budgets announced throughout last year, in the wake of the Covid-19 pandemic, it has been progressive, and offers an objective and detailed plan of action. The Rs 1.15 thousand Crore allocation for railways, plan to privatise airports in tier 2 and tier 3 cities and completion of 8,500 Kms of strategic highways by March 2022, are all efforts in the right direction, to bring down the cost of logistics and transportation. Further, the development of Eastern, Western, East-coast, East-west and North South dedicated freight corridors, is set to give a boost to logistics and supply chains across the country, improving connectivity and bringing down the costs. The voluntary scrapping policy for vehicles and the thrust on electronic/ greener transportation will, in turn, help reduce the carbon emission and control the air pollution index, which was vastly attributed to transportation. This has out and out been a well-planned and detailed budget that showcased the actionable points by the government and the desired impact, in line with the long term economic goals.
Bhushan Parekh, Director, SME Solutions, CRISIL
Ease of doing business and Digitization for MSMEs:
Doubling the tax audit limit to Rs 10 crore will improve ease of doing business for micro and small enterprises. This will also boost digital payments because the limit applicable to businesses with <5% transactions in cash. The 4x increase in the paid-up capital threshold of small companies to Rs 2 crore, and turnover by 10x to Rs 20 crore will ease their compliance and procedural burden.
Prasad Sreeram, Co-founder & CEO, COGOS Tech
COGOS welcomes the Budget speech and extends hearty congratulations to the honorable Finance minister, in the face of millennium crisis the country has responded, actioned and recovered extremely well and this budget is a progressive one with no additional levies or change in slabs. We also welcome the announcement of scrappage policy, which will unlock the value of old vehicles and also incentivize next gen greener alternatives, awaiting the finer details of the policy. Allocating Rs 5.54 Trillion for infrastructure development will boost the economic growth, like how Golden quadrilateral project triggered 2 decades ago.
Samantak Das, Chief Economist and Head of Research, JLL India
Given that the economy is well on its path to recovery, Union Budget 2021 has focused on enhancing expenditure while keeping the fiscal targets at bay in the short term. This Budget focuses on augmenting infrastructure with a special focus on expediting urban infrastructure projects which will act as a strong catalyst in driving real estate in urban areas. There is also a continued thrust on the agriculture sector which is likely to result in higher incomes and drive consumption.
The proposed easing of restrictions on leverage by InvITs/REITs will attract more REITs listings and thus higher investments into real estate. The announced monetisation of surplus land of government and government bodies is a welcome move; however, the implementation will need to be monitored.
While the government has not announced any significant fresh policies and / or programs pertaining to real estate, its commitment towards boosting affordable housing remains intact. The Budget has extended the benefit of additional interest deduction on home loans for first-time homebuyers in the affordable segment. Further, there is a time extension to claim the tax holiday on profits from affordable housing projects until March 2022. The government continues to promote affordable rental housing schemes by providing tax exemption for notified rental housing projects. This will accelerate the pace of investments in this scheme and is likely to fall in line with achieving the overall objective of Housing for All.
Ankush Kaul, President-Sales & Marketing, Ambience Group
The focus of the Union Budget 2021-22 is to improve economic efficiency and infrastructure growth. Increased focus on infrastructure growth and capital expenditure will impact the overall growth of the real estate sector too. A good infrastructure could propel the development of real estate, both commercial and housing, along the transit corridors, highways and newly proposed airports.
Kamal Khetan, CMD, Sunteck Realty Ltd
The Union Budget has packed some great ideas and a definite direction for strong economic growth ahead, especially through infrastructure, capital expansion and banking and financial services. For real estate, the move to extend the tax holiday available for the purchase of affordable houses as well as for the affordable rental housing projects is a welcoming move as it would further strengthen the confidence among both developers and homebuyers. The move will certainly prompt more demand, especially among first time buyers who generally fall in the lower and mid income segments. Also, the extension of the tax holiday on affordable housing projects for developers by another year will increase the project launches in this segment as they would get additional time and resources. Apart from this, the mega infrastructure development and upgradation to be undertaken across India will add much value to the real estate sector.
Abhishek Jain, COO, Satellite Developers Pvt Ltd
The Union Budget 2021-22 continued the government’s focus on the affordable housing sector. The government’s decision to extend tax holiday for affordable housing projects by another year is a step in the positive direction to boost the sentiments among real estate players in the market and achieve the government’s vision of ‘Housing for All by 2022’ for India. This budget has focussed heavy on infrastructure that will indirectly lift the housing demand especially in the Tier II and Tier III cities. Also, the government's continuous efforts to promote affordable housing will help the real estate sector business in a long way going forward.
Ratul Puri, Chairman, Hindustan Power
The thrust of the Budget is on reviving the economy. It is positive and refreshing in its scope and scale. All the announcements are forward looking and will put India back on the growth trajectory. The announcement of ₹3.05 trillion package for discoms is encouraging and will reform the ailing power distribution sector. Prime Minister Narendra Modi government’s focus on improving financial health of state power utilities will ensure consumers get more choices as it will promote competition, reliable power supplies and make sector attractive to foreign investors, besides giving overall boost to the industry.
The Budget has also given a boost to the non-conventional energy sector by allocating Rs 1,000 crore to solar energy corporation and Rs 1,500 to renewable energy development agency. It is a welcome move.
Pushkar Singh, Co-founder & CEO, LetsTransport
In the times of stress, when nobody has the idea of how things will come into play, the government has yet again proved that their approach towards resolving the stress by spending the budget where it’s required the most highly commendable. The move will increase the much-needed demand and result in getting the economy back on track. The announcement of a voluntary vehicle scrapping policy is a welcome move for logistics solutions providers which will result in more sustainable and better logistics.
The allocation of Rs 1.18 trillion in Budget 2021-22 and the announcement of over Rs 2 trillion worth of highways in 4 states is a welcome move for smoother logistics and transport. Benefits of these will be reaped by Tier-II and smaller cities and will allow better connectivity to every nook and corner of the country. We are very happy to see such steps and hoping for an even better implementation.
Anil Gupta, Chairman-cum-Managing Director, KEI Industries Ltd
The prime objective of Budget’21 is to boost and revive the economy that suffered a major setback due to the global pandemic Covid-19 while also increasing the purchasing power of the customers. Allocation of Rs 3.05 lakh crore outlay over 5 years for a more revamped reforms-based power distribution sector scheme will provide assistance to the DISCOMS which further will benefit us in establishing well-defined strategies and plans to generate more demand and ensure smooth power supply. Further, the government’s announcement to boost renewable energy, solar energy corporation to boosting renewable energy development would in turn help us frame the sector very differently and efficiently. Additionally, looking ahead at the zeal to augment the country’s infrastructure with highway, enhancing public transport in urban areas will prove to be beneficial for the overall development of the society and give the much needed boost to manufacturing companies like ours to get back to powering the economy as per pre-covid levels.
Vivek Bhatia, MD & CEO, thyssenkrupp Industries India
The Union Budget for 2021-22 presented by the Finance Minister Nirmala Sitharaman today, has introduced many reforms benefiting the manufacturing, infrastructure and automobile sector along with the announcement of additional PLI schemes. The government aims to spend Rs 1.97 lakh crore on various PLI schemes over the next five years to boost the manufacturing sector. This will attract global players in the Indian manufacturing sector, as the government is planning to offer plug-and-play infrastructure to the companies willing to come to India. In the automobile sector, the introduction of the Scrapping policy will be a game-changer for the auto-component segment. Under this policy, all private vehicles beyond 20 years and commercial vehicles older than 15 years will have to undergo a fitness test, which will provide many opportunities for the auto-component manufacturers. Besides, the holistic approach towards creating AtmaNirbhar Swasth Bharat Yojona with an outlay of Rs 64,000 crore for the next six years is a big step towards bringing back the health of the country.
For the year 2022, more economic corridors are planned to boost road infrastructure with capital expenditure at Rs 5.54 lakh crore. Also, the government’s aim to complete 11,000 km of national highway infrastructure this year will encourage and offer a positive relief to the related sectors. With this, we have already started observing that the increased outlays in road sector, infrastructure development, railways, gas pipeline development will create major boost to the V–shaped recovery.
We also expect strong growth to continue in the cement and mining sectors driven by recent policy initiatives which are further reinforced through the budget today. Besides, chemicals and power sectors which are critical for us, should also grow strongly given the support from the government. We welcome all the policies announced in today’s budget and we are very positive that it will put Indian manufacturing sector back on an aggressive growth trajectory after a pandemic induced setback.
Updated 6 February:
Sanjay Dutt, MD and CEO, Tata Realty and Infrastructure
The lockdown in 2020 and its subsequent continuation in 2021 has caused a lot of disruption and set back to the economy as well as the real estate sector. The government therefore had to focus on providing relief to people and the industry. We welcome the government’s intent to deliver a growth oriented budget. However, we had expected the government to do more for the sector because of the multiplier effect it has on the economic growth. The government’s measures in 2020 have only provided some relief. The budget provided an opportunity to consider lowering GST on building materials, no GST on JDA and TDR, and extending the tax benefit from affordable to mid housing would have made a significant impact. Additionally, allocating additional capital for distressed funds could have eased the liquidity needed for last mile funding, allowing FDI in ready to move in inventory to unlock capital and provide for liquidity to NBFC, banks and developers.
Acknowledging the role of NRI homebuyers and increased interest amid the pandemic, the government’s decision to reduce NRI residency limit will help. Raising customs duty on solar inverters to 20% from 5% is likely to add to the cost of the commercial and residential developments while monetisation of land is likely to provide more land for development and arrest its rising cost.
For the investor community, we are pleased with the proposal to make dividend payments to REITs (Real estate investment trusts) and InVITs (Infrastructure investment trusts) exempt from TDS. The Indian real estate sector is at an interesting juncture and I strongly believe REITs will define the future as they allow investors to expand their range of properties. The Finance Minister’s plan to introduce a bill to set up a DFI (development finance institution) for long-term funding infra projects with a capital of Rs 20,000 crore and lending Rs 5 lakh crore in the next three years is a great move for India’s sustainable infrastructure. We look forward to working with the government for these crucial infra projects by leveraging the Tata brand to contribute to India’s exciting growth story.
Anil Saboo, President, IEEMA
A figure of Rs 3.05 lakh crore will be invested in Discoms for improvement of feeder separation, prepaid smart metering and upgradation of systems. This investment will improve the functioning of Discoms and help in improving their health and viability.
Sandeep Mathur, Brand Leader, CASE India
The Budget 2021-22 has put a lot of focus on reviving the infrastructure sector. The government’s effort towards further enhancing the roads and highways projects to 7,400 new projects is a welcomed step which will ensure a better year for the infrastructure sector as well as for the construction equipment industry. The announcement of introduction of the development finance institution providing Rs 20,000 crore to launch the national asset monetisation pipeline to fund new infra projects, will strengthen the stability of the sector. Additionally, the multitude of announcements on the highway projects in Tamil Nadu, Kerala, West Bengal and Assam will further give a much needed boost to the sector. The government's vision of committing Rs 1.97 trillion to the manufacturing sector over five years will help the industry immensely. We are confident that all these efforts will play an important role in reviving the sector and bringing back the economy to normalcy.
Tomohiko Okada, Managing Director, Toshiba India
The Union Budget 2021 is geared towards recovery, revival and growth for a more sustainable and inclusive economy. Our key takeaway is the government’s focus on initiatives like Jal Jeevan Mission and Urban Swachh Bharat Mission 2.0, CapEx fund for railways, and voluntary vehicle scrappage policy, that we may relate our business too.
The Jal Jeevan Mission initiative calls for countrywide wastewater treatment infrastructure. Through our subsidiary Toshiba Water Solutions, we will be happy to utilise our strengths in providing water and wastewater treatment solutions and support the government’s aims.
Voluntary vehicle scrappage policy will boost demand for fuel-efficient, environment friendly vehicles. Toshiba’s rechargeable battery SCiB is ideal for hybrid vehicles for features like excellent safety, long life, and rapid charging. We expect the SCiB can promote green transportation in India.
Toshiba looks forward to offering more of our infrastructure solutions to India, turning on the promise of a new day for a sustainable economy.
R Mukundan, MD and CEO, Tata Chemicals
The first budget of the new decade has ensured the right balance of sustainable growth, social equity and long-term competitiveness of the Indian economy.
The proposed step to create more stability in the tax regime is a welcome move. This, combined with simplification and a further improvement in the dispute resolution process, will augur well for tax compliance and increase in resource mobilisation.
The impetus in funding towards railways, roadways and ports will go a long way in improving the competitiveness of Indian industry by reducing the cost of logistics.
The continued support of manufacturing with the Productivity Linked Incentive (PLI) scheme will further strengthen the Atmanirbhar Bharat mission to help the country integrate more strongly with the global supply chain. The PLI scheme coupled with duty rationalisation of inputs especially naphtha will bode well for value added products and speciality chemicals.
Also, the start of the hydrogen economy is a welcome step. All in all, a balanced approach to resource mobilisation, stability in taxation and focused sectoral steps to spur manufacturing growth will ensure that we come out of this pandemic stronger and more competitive.
Sanjay Bhatia, Co-Founder & CEO, Freightwalla
For most of the last year, the shipping and logistics sector has been under strain due to global headwinds. The industry was expecting short term measures to lower the current pressure faced by the industry. Having said the budget did include steps to boost the sector in the long term. Invitation to private players to manage the ports is a beneficial move for the industry. Private port management players having knowledge and competencies can transform the overall functioning, thereby increasing its potential in shipment handling. It can also lead to digitising the entire port facility and providing an experience to the consumers and users. The industry provides direct and indirect employment opportunities to millions of people in the country. The launch of the scheme to promote merchant ships' flagging will further give a rise in employment. It also sends a signal that the Indian government is welcoming to the international logistics industry.
Additionally, the goal to double the ship's recycling capabilities is another move to generate career opportunities among the nation's youth. Aggressive road infrastructure push will help in smooth cargo movement to and fro from port to shipper. Overall it has been a reasonable budget for the sector, more investments or steps to digitise the industry could have made it even better.
Sumant Sinha, CMD, ReNew Power
It is a growth oriented and forward looking budget. The Finance Minister’s focus on healthcare, infrastructure, power and the financial sector will have a positive, broad based impact on the economy. By increasing capex spending significantly without hiking taxes, and instead focusing on expanding economic activity, the FM has set the groundwork for a sharp and sustained economic recovery over the next several years.
Dilip Oommen, CEO, ArcelorMittal Nippon Steel India; and President of Indian Steel Association
The budget is truly expansionary and progressive, striking a right balance between welfare and growth without being constrained by the fiscal deficit. The government is fully geared up to support and facilitate the economy’s reset and strengthen the country as the business epicentre of the world. Introduction of PM Atmanirbhar Swasth Bharat Yojana in addition to the national health mission is commendable. Heavy spending on infrastructure and increased spending for capital expenditure creation, a 25 % rise, are welcome moves. Asset creation in roads, rails, pipelines, textile Parks, power sector, and more, is a forward-looking initiative. Development finance institution (DFI) has been conceptualised and a lending portfolio of Rs 5 lakh crore in years, is a step in the right direction. A targeted program of disinvestment to raise Rs 1.75 lakh crore can unlock value in the public sector units, as I mentioned in the pre-budget discussions. Voluntary vehicle scrappage policy will improve business sentiments. The budget truly intends to propel the goal of a 5 trillion dollar economy. If there was no reduction in customs duty on finished and semi finished steel, it would have helped the domestic steel sector instead of some non FTA neighbouring countries.
Subhrakant Panda, VP, FICCI and MD, IMFA
The budget is very comprehensive and proposals are well thought through which will provide fiscal support for investment and consumption while also providing a five year roadmap to come back to prudent norms. Higher outlays for various sectors augurs well, as does the fact that the quality of expenditure is improving with more thrust on capital expenditure. Setting up of a DFI to fund long gestation projects, and an asset reconstruction cum asset management company to deal with stressed assets are welcome steps. Limiting reopening of assessments and providing for a faceless ITAT will encourage the honest taxpayer. Similarly, several regulations and laws subsiding into a single securities code is a very positive step. Finally, no major changes in the tax structure is a major commitment to provide stability.
Amish Mehta, COO, CRISIL
This is a growth-centric, expansionary budget that pushes many right buttons, while focussing on improving the mid term growth trajectory.
Spending will continue despite limited new tax revenue, and the focus is clearly on stimulating growth after a once-in-a-century shock.
While this implies higher-than-anticipated fiscal deficit and borrowings, and therefore adds an upside risk to interest rates, the quality of spending will improve.
The CAGR for capital expenditure over fiscal 2020 is a praiseworthy 28%, while revenue expenditure growth is contained at 12%.
Reduced dependence on IEBR–essentially off balance sheet financing done through the public sector and government entities such as NHAI, for funding capex is also a positive.
There are also other noteworthy and progressive steps for the financial sector, including on privatisation of public sector banks, transfer of bad loans to a ‘bad bank’, adequate allocation for recapitalisation, and increase in foreign direct investment limit in insurance.
Asset monetisation in infrastructure, and the plan for a development finance institution will reduce the pressure on banks to fund long-term projects.
The thrust on domestic manufacturing is evident in higher custom duty for PLI-linked segments.
The better-than-expected recovery seen in the past few months led by larger companies is yet to fully benefit MSMEs.
A few steps in this regard will go a long way in supporting this segment that is so critical for jobs and exports.
Tulsi Tanti, Chairman, Suzlon Group and Indian Wind Turbine Manufacturers
I am particularly inspired by the union budget presented by our FM today. It has the right set of priorities and initiatives required to stimulate our nation’s economy post the Covid 19 crisis. The budget is bold and focuses on the basic drivers of our economy. Focus on infrastructure, power sector and renewable energy is particularly encouraging, however, there is ample impetus for healthcare and Atmanirbhar Bharat. I am also delighted to see that the government is focusing on inclusive development, innovation and human capital which is going to build the new India of our dreams.
This is a very comprehensive budget and there is enough in this budget for all sections of the industry and society. The stimulus for the MSMEs will help build the foundation of a strong domestic economy. It is rare to see such a wide range of coverage in the union budget and I congratulate the Finance Minister and the Government of India for the same. I am sure this budget will go a long way in building a sustainable and strong India.
K Satyanarayana, Co-Founder and Director, Ecom Express
We are encouraged to see the government’s commitment towards ensuring smooth logistics services by creating an outlay budget for national highway projects to the tune of Rs 1.18 lakh crore of 8,500 km by March 2022 and an additional 11,000 km of national highway corridor. This impetus given to infrastructure and logistics industries, being the backbone of the economy, will help give a solid and much needed boost to the economy, especially post the global health pandemic related situation.
In particular, we welcome the continued focus of a digital India with the introduction of a Rs 1,500 crore scheme on digital payment which will help smoothen the customer interface for logistics companies like us. We also feel heartened to see the government’s efforts to allow women to work in all categories with adequate protection and the introduction of minimum wages. This will definitely help encourage more women to come on board in logistics sectors across categories as the government has also introduced social security benefits for gig and platform workers. This will augment our current initiatives in this direction for more diversity and inclusion.
Kshitish Nadgauda, SVP and MD - Asia, Louis Berger
As the backbone of any economy, impetus to infrastructure is one of the key tools to give the economy a solid boost. It is one of the surest ways for an economic rebound, especially after the global health crisis which has slowed down and crippled many economies. Infrastructure has been a key focus area of the government. It was therefore encouraging to see it amongst the top two pillars of the budget for FY 21-22 as announced earlier today by the Honourable Finance Minister, Ms Nirmala Sitharaman.
In particular, we welcome the focus on continued investment in the development of urban mass transit (Metro Rail) projects in India. Such mass transit projects are vital to realise multiple benefits such as reduction in air pollution, time saving for commuters, reduction in accidents, reduction in traffic congestion, fuel savings, etc. The announcement of the central fiscal funding for metro rail projects showcases the government’s continued focus on metro connectivity. We welcome this move and believe that this will lead to building safe, world-class transportation facilities which would be availed of by the common man.
We also welcome the proposals of the continued development of Economic Corridors. These road and highway projects will boost the economy by creating thousands of jobs that are much needed during these times and attracting greater investment along the corridors because of the improved infrastructure. Additionally, the soon to be tabled bill on DFI (development finance institution) is a much awaited step which will provide funding to construction in the Infrastructure sector. Additionally, we welcome the announcement of the new 11,000 km of proposed roads and highways in the states of Tamil Nadu, Kerala, Assam and West Bengal. We would urge similar investment in other states.
Ashwath Ram, MD, Cummins India
At first glance, it appears to be a progressive budget. There is a focus on the socio-economic development of the country with an emphasis on railways, the power sector, infrastructure, healthcare, and enhanced digital connectivity. The voluntary policy on the scrapping of vehicles will have a positive impact and will drive the commercial vehicle and auto sector forward, the industry wanted an incentive-based scheme so we are still seeing the details. In addition, MSMEs and other user industries have been severely affected by the recent sharp rise in iron and steel prices. The industry will definitely receive a push by the decision to double the allocation of MSME and reduce the customs duty on some of the steel products. The focus on highways and the infrastructure investment plan will definitely give the necessary impetus to the CV and construction equipment businesses.
Farrokh Cooper, CMD, Cooper Corporation
Budget 2021 is optimistic, driving the country towards Atmanirbhar Bharat by putting significant stress on railways, power sector, infrastructure healthcare, banking, insurance, and agriculture, which will not only enable the country to revive its economy but will also stimulate growth. Voluntary policy on the scrapping of vehicles would have a positive effect and will move the commercial and automobile industries ahead. The industry would definitely be encouraged by the decision to double the allocation of MSME and to reduce the customs duty on steel. Focusing on highways and the investment plan would certainly give the CV and construction equipment the requisite impetus. The government’s increased focus on the infrastructure sector will certainly bring in positive impact.
Vikas Bajaj, President, AIFI(Association of Indian Forging Industry)
This year's union budget is positive, as well as a progressive one with a strong drive towards the country's socio-economic growth. It focuses on the railways, power, health infrastructure, banking, insurance and agriculture sectors. Voluntary policy on the scrapping of vehicles will definitely have a positive effect and will drive the commercial and automotive industries forward. Furthermore, a recent sharp rise in iron and steel prices has affected MSMEs and other user industries severely. The positive step of reduction in customs duty uniformly to 7.5% on semis, flat, and long products of non-alloy, alloy, and stainless steels would certainly contribute to better raw material prices and reduced input costs. Also, no new corporate tax has been added which is positive news as it is a tough time for the industry. The increased government attention on the highways and infrastructure sector would definitely contribute to a significant impact on the manufacturing and Auto industry and help in employment generation which is the most critical need to revive the economy.
Kamal Bali, President and Managing Director, Volvo Group India
Budget 2021-22 announced yesterday by the Honourable Finance Minister under the visionary leadership of PM Narendra Modi is very positive and will surely spur growth. There is potential for employment generation considering that the budget focused on key sectors or pillars, like healthcare, infrastructure, and manufacturing. The focus on scrappage policy and PLI for the automotive sector needs to be studied for details. The promised review and consolidation of GST and customs duty structure (rates) by September 2021 is a welcome development. The purchase of 20,000 buses will augment and render the much needed support to the industry. Overall, it is a growth oriented budget which bodes very well for our trucks and CE business in the coming years.
Mangesh Wadaje, CEO and Director, Highbar Technocrat Limited
The current budget is a definitive step towards spearheading India's march of becoming a dominant world economy. It lays the foundation for a strong economic revival in the post Covid era with an aim to achieve progressive growth, with well defined focus on key areas such as infrastructure, health and medication, banking and finance.
The budget provides impetus towards developing world-class infrastructure in India.
Move towards fast-tracking infrastructure projects, expansion of the metro rail network and the creation of development finance institution (DFI) are transformational initiatives for India announced in this year’s budget.
The DFI's provisioning of Rs 20,000 crore to launch the national asset monetisation pipeline, shall fund the expansion of new infrastructure projects.
All these measures will have a multiplier impact on boosting the nation’s economy. We believe that this budget is transformative and will act as a catalyst for stimulating economic growth.
Amit Kapur, Joint Managing Partner, J Sagar Associates
The budget speech expectedly has given a strong signal for infrastructure development focusing on actualising the ambitious national infrastructure pipeline targeting an investment of Rs111 lakh crore over five years. The signal comes from the announced budgetary allocations and decisions (a) central allocation of Rs 5.54 lakh crore, (b) state allocations of Rs 2 lakh crore, (c) announcement to tap into budgetary resources of PSUs and wide ranging InVITs monetising assets in highways, power transmission, gas pipelines, dedicated freight corridors, airport. The above announcements are strengthened by announcement of establishing Bad Bank in nature of AMC; a development finance institution with a seed investment of Rs 20,000 crore and a target to be build a lending portfolio of Rs 5 lakh crore in three years; an extensive disinvestment program with target of Rs 1.75 lakh crore; zero coupon bonds that will help arrange the infra financing. The devil lies in the details and the success in reviving the economy would depend on effective structural reforms in infrastructure sectors removing barriers to growth + how the government goes about monetising the land bank and assets held by PSUs.
Anuj Puri, Chairman, ANAROCK Property Consultants
Considered ‘the Margaret Thatcher moment’ for the FM, Union Budget 2021-22 was literally a make-or-break event. The circumstances are unprecedented-it is the first budget presented after a pandemic which shattered the economy globally, and in India. The impact of the pandemic has been catastrophic with the early government estimates indicating a 7.7% contraction in FY 2020-21–the biggest GDP growth plunge in over four decades. Expectations across sectors were at an all-time high, though the fiscal pressures on the finance ministry are nothing short of crippling.
As expected, healthcare got the highest priority in resource allocation and policy support including Rs 64,180 crore outlay under PM Atmanirbhar Swastha Bharat scheme. It bodes well for healthcare facilities and wellness-oriented real estate.
Further, FY 2021-22 capital expenditure outlay at Rs 5.54 lakh crore to ensure that the target of becoming a 5 trillion dollar economy by 2025 is well on track. This will positively impact infrastructure, connectivity of Tier 2 cities, and job creation for SMEs and MSMEs – thereby benefiting the target customers of affordable housing.
For the ‘Aam Aadmi,’ personal tax relief by way of tax rate cuts or favourably readjusted tax slabs topped demand and the FM failed to deliver on it. An upward revision in the deduction limit under Section 80C (at Rs 1.5 lakh a year) was long overdue and increasing this limit would have increased disposable incomes, inevitably pushing up consumption. It would have also helped improve consumer sentiments across sectors-the real need of the hour.
As anticipated, affordable housing and rental housing got a big boost with the government extending the period for extra deduction of Rs 1.5 lakh available for loans up to 31 March 2022. This will keep demand buoyant for affordable housing in 2021 as well. Further, the extension of the tax holiday for affordable housing projects for one more year will help bring in more new supply within this segment. As per Anarock research, affordable housing already accounts for more than 35% of the supply across the top seven cities in the country.
Infrastructure got a major push. Infra works proposed include building 8,500 km of highways by March 2022. There were big infra sops announced for poll-bound states including West Bengal, Tamil Nadu, Kerala and Assam. The government also announced the bill to set up development finance institution (DFI) providing Rs 20,000 crore to boost infrastructure projects. The Modi government has not lost sight of its USP of infra creation, which will help connect more areas and thus open them up for real estate development.
Customs duty on steel reduced to 7.5% will create some space for real estate developers who may not be in a position to increase prices immediately.
The announcement to set up seven mega textile parks with plug-and-play facility in three years will unlock the potential of new markets for development and provide an impetus to real estate assets, including logistics and warehousing.
Post the pandemic, the chances of NPAs growing are significantly high. The Budget announced the setting up of ARCs to help banks to cushion the impact of the pandemic. Besides setting up the long-awaited bad bank, the government will also infuse Rs 20,000 crore into public sector banks as part of its recapitalisation plan.
All in all, the budget was broad-based with special emphasis on building robust healthcare infrastructure, physical infrastructure and affordable housing. It will result in job creation in the informal sector, which was severely impacted by the pandemic. Creating buoyancy in the job market will benefit the Indian economy in the long run. The focus on rural job creation will also give a boost to affordable housing, which will help increase housing demand in tier 2 and 3 cities.
Read all about the Budget 2021-22 here.
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