Some key highlights related to cement and the building material Industry are:
# Government to launch a scheme to help deserving sections of the middle class living in rented houses or slums or chawls and unauthorised colonies to buy or build their own houses - Likely positive for cement and building material.
# Capex outlay for next year increased by 11.1 per cent to Rs 11.11 tn i.e. 3.4 per cent of GDP – Infrastructure development remains in focus.
# Three major economic railway corridor programmes will be implemented. These are
a) energy, mineral and cement corridors,
b) port connectivity corridors and
c) high traffic density corridors. Together with DFC, these three economic corridor programmes will help reduce logistic costs. . Additionally, the conversion of 40,000 normal rail bogies to Vande Bharat standards is set to enhance passenger safety, convenience and comfort.
# PM Awas Yojana Grameen Yojana: Now close to achieving target of 30 mn homes; 20 mn more homes planned over the next 5 years due to growing need.
# As part of the Green Energy programme, announced to set up Coal gasification and liquefaction capacity of 100 MT by 2030. This will help in reducing imports of natural gas, methanol, and ammonia.
# Ministry reiterated its focus on development of Eastern region which can support infra and housing development in the region.
# Emphasised on development of Metro Rail and NaMo Bharat in large cities.
"With the decision to increase Capex by ~11 per cent to ~₹ 11 trillion, representing 3.4 percent of the GDP, for the fourth consecutive year, the government is reinforcing their focus on sustainable long term growth, enhancing the nation's infrastructural backbone. The introduction of the three major railway corridors and the expansion of airport facilities in the country is a welcome move in the direction of improving logistics as a GDP growth lever. Key rail infrastructure projects, including Metro Rail and Namo Bharat, expanding to more cities, convey a clear emphasis on connecting rural to urban Bharat. Furthermore, new initiatives to improve port connectivity, infrastructure, and facilities will open up opportunities for job creation while boosting tourism. It is a well-rounded budget that demonstrates the government's continued emphasis on important sectors.”
Shalabh Chaturvedi, Managing Director, CASE Construction Equipment, India & SAARC
“Capex outlay for next year increased by 11.1 per cent which undoubtedly represents that the growth momentum will continue, considering this is an election year. This increase is coming from a position of confidence. Infrastructure spending has a higher multiplier effect across the ecosystem and is a must to continue reviving demand in the economy. I believe the announcement is positive bearing in mind that intention also was to maintain fiscal discipline.”
Ajay Sawhney Partner, Cyril Amarchand Mangaldas Cyril Amarchand Mangaldas.
“The budget showcases a strong projection of India’s journey from developing to a developed nation, with multiple announcements focused on the socio-economic upliftment of the masses under the PMAY scheme through a strong development of real estate and infrastructure. The announcement of a housing scheme dedicated to middle-class citizens will empower the masses to shift to buying from renting, thus elevate the overall standard of living across the country. The Metro Rail and Namo Bharat expansion will influence the rapid spread of urbanization, thus leading to creation of micro-markets in and around metro cities.
In the pursuit of economic resilience, the Interim Budget also charts an ambitious course, unveiling a capital expenditure of Rs 11.1 trillion for FY25. With a prudent 11.1 per cent rise in infrastructure spending, the budget echoes a commitment to aligning growth estimates. In addressing the pressing issue of deteriorating infrastructure, India's imperative lies not in reduction but in a substantial increase in investment—a pivotal step towards a robust and sustainable future.
From a broader perspective, the First Develop India – FDI initiative will further propel development and infrastructural growth, adding significant value to job creation, emergence of new micro-markets, strengthening purchasing power, ultimately boosting the housing demand across India.”
Dhaval Ajmera, Director, Ajmera Realty & Infra India
“The interim budget presented by the Finance Minister is growth-oriented, focused on poor, youth, women and farmers and their empowerment catapulting socio-economic growth to a new height.
The One trillion fund corpus for research in Sunrise will boost innovations powered by the private sector in India which will catapult India in the international arena in the R&D field.
The rooftop solar power installations provided by the government for households is innovative.
Overall, the budget announces a good allocation of Capex expenditure.
We welcome introduction of the new scheme for middle-class to buy or build their own homes. Under the PM Awaas Yojana-Grameen, the announcement to build 20 million additional houses in the next 5 years to cater to growing demand under the Pradhan Mantri Awas Yojana is encouraging. This will support the housing market to grow. This will not only create a lot of job opportunities for those in the housing and construction industry but also provide a lot of scope on ancillary industries like cement, paint, etc. Sustained focus on infra development under PM Gati Shakti Mission, increased and better rail and road connectivity to tier 2 and 3 cities will further housing sector growth and development in these cities. So overall it is a good budget. However no further tax benefit has been announced for the taxpayers. So this will deter the common man from investing in homes as they will not have additional money in his pocket. So for middle-class buyers we needed some sop on taxes and a reduction in home loan rates. Also, the real estate segment is expected to raise the threshold limit from the existing Rs 4.5 million for affordable housing. The announcement on the focus on the eastern region enhanced our hope and we expect more announcements on this soon.”
Sushil Mohta, President, CREDAI West Bengal and Chairman, Merlin Group
“I welcome the interim budget as a growth-oriented and non-populist budget. It focused on empowering youth, women, farmers and the poor. It also announces a good allocation for capex expenditure and provides a big boost to the housing and infrastructure sectors. The announcement of the new housing scheme for middle-class people has raised our hope. Covid 19 has brought in this paradigm shift and prompted people to buy their own spacious homes. The new scheme to be launched to encourage the middle class to buy or build their own houses is in line with this paradigm shift on the need for their own homes. This will not only create a lot of job opportunities for those in the housing and construction industry but will also provide a lot of scope on the ancillary industries like cement, paint, etc. However, we had expectations of a change of definition for affordable housing. There has been a need to raise the threshold level from 4.5 million for the affordable sector. The announcement on the additional 20 million rural housing Pradhan Mantri Awas Yojana is also a welcome move. However, as tax rates remain unchanged, the common man will not have additional money in his pocket, which maybe a deterrent to the spending capacity of taxpayers. So for middle-class buyers, we needed some sop on taxes and a reduction in home loan rates. Announcement on focus on the eastern region enhanced our hope for the development of Eastern India.”
Saket Mohta, Managing Director, Merlin Group
“This is yet another proactive and progressive roadmap for faster and sustained growth of the country. The (interim) Budget 2024 reflects the government's efforts towards accomplishing the prognosis of 7 per cent growth or higher in the coming year when the world is struggling to grow at 2 per cent. Indeed, 2014-2024, the country has witnessed transformative growth – from fragility to stability and strength with the Indian economy undergoing many structural reforms, strengthening the macroeconomic fundamentals and making India emerge as the fastest-growing economy and set to hit the $5 trillion mark in the next three years, also becoming the third-largest in the world. The interim budget is focused in this direction. The aim to reduce or contain the fiscal deficit to 4.5 per cent by 2025-2026 is good. The plan to build 20 million more houses and launch a new plan for the middle class will be a booster for housing development and depict the concern of the government towards providing housing for all. Capex of Rs 11.1 trillion in 2025 will be the biggest and most welcome. We can expect better provision of infrastructure development in the regular budget that will be tabled in July 2024. The government’s objective to reduce logistic costs by building three major railway corridors and expanding metro rails to more cities is laudable. Similarly, the approach of a bilateral investment treaty to promote FDI. Establishment of the corpus of Rs 1.1 trillion towards long-term finance will encourage the technology sector in a big way. Hopefully, the government will revisit areas like affordable housing and tax provisions, particularly the Individual Income Tax which directly impacts areas like housing development and overall economic development, while submitting the regular budget. With India becoming a world power, we can expect a comprehensive regular budget in July 2024 fulfilling the aspirations and expectations of various industries and individuals.”
- Murali Malayappan, Chairman and Managing Director, Shriram Properties
“The Union Budget has further strengthened the government’s commitment towards long- term social and infrastructure development. It places a significant emphasis on Green Energy, a vital move that aligns with India's 'net-zero' environmental goals while also boosting sustainable and development. Its comprehensive strategy towards the Electric Vehicle (EV) ecosystem is especially noteworthy. This holistic approach is set to benefit a wide range of stakeholders, including original equipment manufacturers (OEMs), service providers, e-payment companies and, crucially the end-users. It is encouraging to see the focus on research and innovation to further grow the EV ecosystem. Overall, it demonstrates a well-rounded vision that promises to propel India towards a more sustainable and economically robust future.”
Anirudh Bhuwalka, CEO, Blue Energy Motors
“As anticipated, the Interim Budget 2024 made no big-bang announcements but it continued its focus on infrastructure upgrades and building connectivity across the country. This will benefit real estate growth in not just the top cities but in Tier 2 and 3 cities across the country. The FM made some announcements that will go on to benefit the sector both directly and indirectly:
PM Awas Yojana (Gramin) - Despite all the challenges, implementation of this scheme continued, achieving the target of close to 30 million houses and now aims for 20 million more houses to be taken up in the next five years.
Housing for the middle class - The government will launch a scheme to help deserving sections of the middle class, living in rented houses or slums or chawls and unauthorised colonies to buy or build their own houses. This is likely to free encroachment areas like slums for easier redevelopment.
Capex outlay allocation to be increased by 11.1 per cent to Rs 11,11,111 trillion, accounting for 3.4 per cent of GDP - This will unlock potential for real estate development across assets because a major part of this allocation will be used for various infra upgrades and new projects.
Transit oriented development in urban areas – This may give a boost to housing demand in cities and lead to rise in residential prices.
Development of iconic tourist centres – This is likely to favourably impact the hospitality sector with hotels and restaurants across categories. Moreover, long-term loans proposed to states for tourism.
Extending tax benefit to start ups for another year – this may help the office real estate to rejuvenate.
Key Unmet Expectations
Industry status: The industry has been requesting industry status for years, believing it would unlock benefits like easier access to credit, tax breaks, and infrastructure development. This wasn't explicitly addressed in the interim budget.
Tax benefits: Tax incentives for homebuyers, such as increasing the deduction limit on home loan interest under Section 24, were expected. The interim budget remained silent on this as well.
Affordable housing: Boosting allocations for schemes like PMAY (Urban) to improve affordability and encourage new projects in this segment was a key expectation. No major announcements appeared in the interim budget regarding this either.
While the interim budget didn't directly address the real estate sector's key demands, the upcoming Union Budget might hold more concrete measures addressing industry concerns and potentially impacting market trends.”
Anuj Puri, Chairman, ANAROCK Group
“The real estate industry expects a good change in response to the Interim Budget 2024's pledge to support middle-class housing. The government's dedication to helping those who live in chawls, unofficial colonies, slums and rented homes achieve homeownership is a reflection of a revolutionary vision. As property developers, we applaud this initiative and anticipate working together to implement solutions for accessible homes. The finance minister's initiative indicates a common goal for inclusive real estate development. It will boost the industry's expansion and contribute substantially to achieving the goals of the middle-class population.”
Manju Yagnik, Vice Chairperson, Nahar Group, Senior Vice President of NAREDCO- Maharashtra
“Unfortunately, the interim budget 2024 didn't directly include any major positive changes for India's housing industry. While the expectations included industry status, tax benefits, affordable housing boosts, and easing liquidity issues for developers, none of these materialised in the interim budget. However, there are a few ways we could interpret the situation cautiously optimistically:
- Indirect benefits: The focus on infrastructure spending might indirectly benefit the housing industry by improving connectivity and boosting overall economic activity, potentially leading to increased demand.
- Focus on affordable housing: While lacking specific budget allocations, the government's recent emphasis on "Housing for All" and Pradhan Mantri Awas Yojana (PMAY) could translate into concrete measures later.
- Uncertainty avoided: The absence of negative changes may be seen as a positive in an environment where economic headwinds exist.
This is only the interim budget and the main Union Budget will hold more substantial announcements. Even without direct intervention, government policies impacting interest rates, inflation, and economic growth can significantly influence the housing industry.”
Akash Pharande, Managing Director, Pharande Spaces
“The real estate industry expects a good change in response to the Interim Budget 2024's pledge to support middle-class housing. The government's dedication to helping those who live in unofficial colonies, slums and rented homes achieve homeownership is a reflection of a revolutionary vision. As real estate developers, we applaud this initiative and anticipate working together to implement solutions for accessible homes. The finance minister's initiative indicates a common goal for inclusive real estate development. It will boost the industry's expansion and contribute substantially to achieving the goals of the middle-class population.”
Ayushi Ashar, Director, Ashar Group and Member of Managing Committee of MCHI-CREDAI
“The scheme for deeptech in defence will not only help the government start addressing the Make in Bharat initiative through indigenous technologies in defence but also unlock these technologies to other civilian uses. Deeptech focused funds like ours will definitely benefit from enabling initiatives like this. The solar rooftop schemes will be a big boost to not only meet our goals for clean energy, but will also set up India to start addressing the EV charging infrastructure that is currently holding back wider adoption of EVs. It will also create enormous jobs for installation, manufacturing and maintenance of solar infrastructure and a secondary effect will be opportunities available for startups to build on this.
Bio-manufacturing, bio foundry, bio-degradable polymers, bio polymers and bio agricultural inputs are all critical areas that India needs to address, given the fact that our cities continue to figure on the most polluted regions in the world. This will enable critical technologies to effectively use waste from agri-produce and also encourage innovations in our CSIR labs in these areas towards commercialisation.
Extension of tax benefits for sovereign wealth funds expiring on 31st March 24 to 31st March 25 is a good signal from the government to indicate that there will be continuation of beneficial policies and friendly institutional investor policies.”
Mayuresh Raut, Co-founder and Managing Partner, Seafund
“The Interim Budget reflects a comprehensive vision aimed at fostering inclusive growth and sustainable development in India. The focus on transforming India into 'Viksit Bharat' by 2047 underscores the government's long-term commitment to national development. This vision, encapsulated in the slogan "sabka saath, sabka vikas" (together with all, development for all), emphasizes the inclusive nature of the government's approach.
The emphasis on GDP, redefined as governance, development and performance, is a strategic move, particularly in the context of the upcoming general election. This redefinition indicates a shift towards a holistic view of economic growth, one that intertwines effective governance and sustainable development with performance metrics. It's a narrative that might resonate well with the electorate, considering the administration's bid for a third consecutive term.
The commitment to the PM Awas Yojana Grameen, with the target of constructing 20 million additional houses, continues the government's focus on rural development. Achieving the milestone of 30 million houses under the rural housing scheme and setting an ambitious target for the next 5 years reflects a significant investment in infrastructure development that addresses a basic need – housing.
The announcement of a new housing scheme for the middle class is particularly noteworthy. This initiative seems to be aimed at addressing the housing needs of those living in substandard conditions like slums and chawls or those burdened by rent. By facilitating home ownership, the government is not only looking to improve living standards but also to stimulate the real estate sector and associated industries.
Overall, the budget appears to be strategically crafted with an eye on both immediate and long-term goals. It caters to key segments of the population – the rural poor, the middle class and those looking towards the government for improved governance and development. The success of these initiatives, of course, will depend on effective implementation and the government's ability to meet these ambitious targets.”
Sandeep Runwal, President, NAREDCO Maharashtra
“Overall, it’s a positive and people centric budget with a focus on healthcare, skill, tourism and infrastructure development among others. As part of the interim Budget, the emphasis has remained on capital spending outlay of Rs 11.11 trillion for FY25 to boost economic growth. By launching a scheme to ensure homes for the middle class and building 20 million more homes under rural housing schemes, it will boost the real estate sector, especially the affordable one. In addition, the real estate sector will see a further rise in demand because of infrastructural development, the extension of key railway projects, and enhancement of connectivity by building various corridors. Furthermore, the Govt’s focus on tier-2 and tier-3 cities by developing iconic tourist centers will generate employment opportunities and further boost the real estate sector.”
Manpreet Singh Chadha, Chairman, Wave Group.
“JK Lakshmi Cement applauds the Finance Minister Nirmala Sitharaman for crafting the visionary Union Budget 2024-25, a blueprint that aligns profoundly with our ethos of inclusive development. As a stalwart in the cement industry, we welcome the Government of India's commitment to fostering growth, sustainability, and inclusivity. The government's strategic focus on all forms of infrastructure be it digital, social, or physical, and a strong emphasis on women's empowerment, resonates with our forward-looking mission. The significant increase in infrastructure outlay to Rs 11.11 trillion and the emphasis on green growth shows the government's pursuit to propel our nation towards economic excellence.
As a key player in the cement sector, we are eager to contribute meaningfully to the strategic railway corridor programmes, particularly those targeting energy, mineral, and cement corridors. 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. As we navigate the next five years of unprecedented development, our company remains steadfast in its commitment to supporting the government's vision of a Viksit Bharat by 2047 and contributing to the nation's journey towards economic excellence while creating opportunities for all."
Arun Shukla, President and Director, JK Lakshmi Cement
“The Interim Budget 2024, delivered by Finance Minister Nirmala Sitharaman, exemplifies a conservative and assured fiscal plan. The authorisation of an 11.1 per cent rise in capital spending to Rs 11.11 trillion, equivalent to 3.4 per cent of GDP for the fiscal year 2024-25, is a welcome step that matches with market expectations, promoting an atmosphere conducive to economic growth.
Similarly, the government's dedication to infrastructure development is demonstrated by its emphasis on supporting worthy members of the middle class, particularly those living in slums or leased housing. This initiative is designed to facilitate the purchase or construction of their own homes. The ambitious objective of building 20 million residences in rural regions over the next five years under the PM Awaas Yojana - Gramin is a notable endeavour. Furthermore, the near completion of the 30 million homes objective under the PM Awaas Yojana - Gramin and the start of a rooftop solar project to give free power to 10 million families are excellent initiatives. Likewise, allocating 70 percent of these houses for women, emphasises the government’s commitment to gender-inclusive development.
The budget's emphasis on green initiatives, bio-manufacturing and blue economy activities is expected to have a substantial influence on real estate markets. The promotion of sustainable alternatives such as biodegradable polymers and bio-agri-inputs creates opportunities for environmentally aware real estate construction.
Furthermore, the extensive expansion of tourist centres, together with the implementation of a facility grading framework, presents exciting opportunities for the hotel industry. This is projected to help real estate in important tourist-friendly areas.
The Interim Budget 2024 represents a forward-thinking approach, tackling critical areas while driving the country towards a brighter, more sustainable future. The Finance Minister declared that the forthcoming July Budget will contain the comprehensive Viksit Bharat agenda. She emphasised the needs and aspirations of the Garib, Mahilayen, Yuva and Annadata, highlighting the government's primary priorities and we applaud her and the government for the same.”
Pritam Chivukula, Co-Founder and Director, Tridhaatu Realty and Vice President, CREDAI-MCHI
“Firstly, the Finance Minister's emphasis on India as a "youthful nation with lofty aspirations" is a nod to the country's demographic advantage. This perspective is crucial as it underscores the government's commitment to harnessing the potential of its young population, which is pivotal for long-term economic growth and innovation.
The budget's continued focus on infrastructural upgrades is a strategic move. By investing in infrastructure, the government is not only enhancing the country's physical capabilities but also indirectly boosting the real estate sector.
The announcement of a new scheme to aid the middle class in acquiring or building their own homes is a commendable initiative. Targeting those living in slums, chawls or rented houses, this scheme could be a crucial step towards inclusive development and addressing the urban housing shortage. It demonstrates the government's recognition of the housing challenges faced by a significant section of society and its commitment to ensuring housing for all. This scheme, once effectively implemented, will have far-reaching impacts on social stability, urban development, and quality of life.
Tax incentives for home buyers in this budget could have been a significant catalyst in further promoting home ownership and boosting the real estate sector.
Overall, the Budget appears to balance continuity in policy with new initiatives aimed at inclusive growth and development.”
Samyak Jain, Director, Siddha Group
“Given this is an Interim budget we believe the Union Budget presented by Finance Minister Nirmala Sitharaman is not a populist but a visionary one. It continues with the government’s commitment to an inclusive growth and sustainable development policy.
The government’s announcement to set up a 1 trillion corpus for tech savvy youth from the private sector with low or nil interest free loans is a welcome move. This will create a huge demand for commercial properties and give a major boost to the start-up business as well.
The government continues with its focus on rural upliftment with the decision to construct 20 million houses for the rural poor, over the next 5 years. This is under the Pradhan Mantri Awas Yojana Gramin which is a positive step.
The government has given due recognition to the burgeoning middle class of our society by introducing a housing scheme for them, which will offer those residing in chawls or slums an opportunity to shift into more respectable housing enclaves.
However, there has been no mention on raising the tax rebate threshold which would offer additional tax benefits to first time home buyers in the affordable housing segment. Given the high cost of living in urban cities, this would have come as a big relief to them.”
Himanshu Jain, VP - Sales, Marketing & CRM, Satellite Developers (SDPL)
"Capital allocation for the Ministry of Road Transport and Highways increased by 3 per cent to Rs 2.72 trillion in FY2025 BE from Rs 2.65 trillion in FY2024 Revised Estimate (RE). Although the growth is modest at 3 per cent it indicates the government focus on the roads sector and enables the ministry to meet the completion targets for Bharatmala and the National Infrastructure Pipeline (NIP). In line with last year's budget announcement, the government continued with the nil borrowing programme for NHAI while keeping the allocation flat at Rs 1.68 trillion in FY2025 Budget Estimate (BE)."
Vinay Kumar, Vice President and Sector Head - Corporate Ratings, ICRA
“In line with India’s goal to be a developed nation by 2047, the interim budget 2024-25 aimed at holistic development with a focus on core areas of the economy. The budget aimed to increase revenue and decrease borrowings by keeping the fiscal deficit at 5.1 per cent for 2024-25, adhering to the long-term target of 4.5 per cent by 2025-26. The revised estimates of fiscal deficit also improved to 5.8 per cent of GDP in 2023-24 compared to the last budget estimates. The budget focused on the development of agriculture and food processing, skill development, women empowerment, sustainable development, healthcare, infrastructure development, tourism and housing sectors.
Infrastructure outlay increased by 11.1 per cent to Rs 11.11 trillion which would be 3.4 per cent of the GDP. This will indirectly infuse growth in the real estate sector. Furthermore, a boost in sustainable development is expected to catalyse momentum of green development across the country including the real estate sector. The construction sector and hospitality industry were also in focus with several announcements in the budget.”
Shrinivas Rao, FRICS, CEO, Vestian
“The Finance Minister's Budget 2024 speech was both positive and encouraging, shedding light on reasons behind economic growth, including the robust demand in the real estate sector, particularly in the high-end and luxury segments. The government's focus on affordable housing, with the announcement of a special scheme for those living on rent, is anticipated to contribute to the overall growth of the real estate sector.
The proposed scheme will contribute to more housing developments in the country, boosting the real estate landscape to newer heights. Moreover, with new financing and entrepreneur-friendly policies, India will witness more people becoming high-net-worth individuals, hence more likely to invest in real estate.
The FM articulated that people are experiencing improved living standards and enhanced earnings, coupled with heightened aspirations for the future. She also mentioned that the average real income of individuals has witnessed a substantial increase of fifty per cent, and inflation has remained moderate.
People have been empowered to pursue their real estate aspirations through the effective and timely delivery of programmes and large-scale projects. The FM expressed optimism, anticipating the continuation of this trend, projecting the next five years to be a period of unprecedented development in India.”
Amit Goyal, Managing Director, India Sotheby's International Realty
“We acknowledge the strategic direction outlined in the 2024 interim budget, particularly its focus on reinforcing the affordable housing sector through increased allocation for the Pradhan Mantri Awas Yojana (PMAY). This puts a spotlight on the government's unwavering commitment to encouraging inclusive real estate development, acknowledging the key role of affordability in comprehensively addressing housing needs. The allocation of 70 per cent of PMAY houses to women in rural areas is of special significance and will go a long way towards providing secure living spaces and advancing women's empowerment. Progress in implementation of PM Awas Yojana (Grameen), approaching the target of 30 million houses, with a commitment to taking up construction of 20 million additional houses over the next five years, reflects the government’s dedication to meet the growing demand for housing in rural areas.
Maintaining a delicate balance between promoting affordable housing and ensuring sustained growth across all segments is crucial, and will no doubt foster an environment conducive to growth, investment, and the holistic development of the real estate ecosystem. Moreover, the increased outlay for infrastructure to Rs 11.11 trillion in FY25 is a welcome move, giving further support for overall growth and development in the sector. Building on these developments, we look forward to continuing to help develop a robust and inclusive real estate landscape in India."
Ashwin Sheth, CMD, Ashwin Sheth Group
“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 20 million 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 for 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 which will further help the overall economy. The proposal to address the emerging fervour for domestic tourism with 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. The interim budget will continue to support the progressive outlook of the government.”
Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East and Africa, CBRE
“As we navigate the landscape of Union Budget 2024, it's crucial for the government to accentuate and foster an environment for both local and global investments in semiconductor technology, AI, and digital platforms. This strategic focus aligns with our industry's evolution. Simultaneously, we recognize the imperative to integrate these cutting-edge technologies into our educational curriculum, ensuring a skilled workforce. This synergy is pivotal to propel our nation towards the coveted 7 trillion economy by 2030.”
Sushil Virmani, Managing Director, Best Power Equipments (BPE)
“Under the PM Gati Shakti Plan, Rs 750 billion has been invested in 2023-24 across 100 critical projects. The master plan is integral to India’s aim to build an inclusive, integrated, and comprehensive economy. Through systematic investments and capacity building it will improve productivity and enhance the overall business climate. The mega plan will be an absolute game changer for tier 2 and 3 cities in India through accelerated last mile connectivity, mass mobility, green growth, and financial investments. Naturally this will translate into increased demand for housing, commercial projects, warehouses, industrial parks, townships, etc. “
Gurmit Singh Arora, National President, Indian Plumbing Association
“The Union Budget reiterates a healthy economic growth marked by improved tax receipt, doubling of GST tax base, revision of fiscal deficit, etc. A healthy economy will augur well for real estate. GOI will come up with better policies and incentives to support mid-income housing, which is a commendable step. Another factor to look into is the constant growth in infrastructure through constructive steps. GOI has announced plans to build more airports, railway corridors, metro lines, EV facilities, etc. This will naturally translate into higher realty demand.”
LC Mittal, Director, Motia Group
“In the middle income segment, incentivising women buyers can be a constructive step. This will increase the participation of women in the property market while also uplifting the overall demand. Women are now an important force in the Indian economy as it is essential to leverage their potential judiciously. Another prudent step is to reduce the rental income taxation. In India, the rental income is taxed at 30 per cent which is seemingly high and is touted as a deterrent. A lowered rate will incentivise investments in the rental markets and can be instrumental in bridging the existing housing gaps, especially in urban centres.”
Anurag Goel, Director, Goel Ganga Developments
“PM Gati Shakti project can bring a windfall for real estate markets in tier 2 and 3 cities in India. The multimodal logistic projects will comprise building new airports, mass transit systems, railway corridors, roadways, waterways, etc. It will create a framework for a more inclusive, integrated and multi-phased growth in India. This will act as an economic growth multiplier with increased capacity development, employment creation and investment inflow. Naturally this will push ahead real estate demand.”
Aman Gupta, Director, RPS Group
“Benefits for women and first home buyers of a substantial nature will work as a catalyst in the mid segment. Third home buyers are to be encouraged. Rental income taxation to be reduced.”
Ananta Singh Raghuvanshi, President, NAREDCO Mahi
"Establishment of new infrastructure corridors for ports, energy, minerals and cement will boost manufacturing and supply chains. Doubling the number of airports to 149 will energize the aviation sector. As a manufacturing-focused company, we welcome the government's aim to enhance the EV ecosystem through manufacturing and charging infrastructure support. The proposed bio-manufacturing scheme for green growth aligns with our sustainability mission.
It is heartening that policy priority will be given to provide training for MSMEs like ours to build global competitiveness. Preparing the financial sector to meet MSME investment needs is key.
The upcoming years will see unparalleled development as we strive for a developed India by 2047. There are abundant opportunities ahead and we are poised to fulfil aspirations of our youth.
The trade corridor connecting India, the Middle East and Europe will be transformative for the manufacturing sector. Our vision is for prosperity in sync with nature, offering opportunities for all.
Guided by reform, perform and transform, our government will adopt policies fostering growth, improving productivity and increasing opportunity. We look forward to timely and adequate financing, relevant technologies and support for MSMEs. With the motto of Sabka Saath Sabka Vikas, we are committed to an inclusive Viksit Bharat by 2047. Our optimistic and aspiring youth will be key in this journey. Importantly, the increased infrastructure outlay to Rs 11.11 trillion in FY25 will provide a significant boost to the manufacturing and logistics sectors."
Rahul Garg, Founder and CEO, Moglix
“The Union Budget's spotlight on the aviation sector is truly commendable, showcasing the government's dedication to its growth. By prioritising infrastructure enhancements and fostering innovation, it signals a promising future for both domestic and international connectivity. The allocation towards modernising airports and simplifying regulatory frameworks reflects a proactive stance, poised to fuel competitiveness and expansion. Stakeholders eagerly await these initiatives, poised to unlock fresh opportunities and drive sustainable development.
Additionally, unification of the tax system through GST has lightened the compliance burden, with 94 per cent of industry leaders viewing it positively. States and consumers alike have reaped benefits, with reduced logistics costs and lower prices. Moreover, the enhancements in air connectivity to tier 2 and 3 cities, along with the introduction of 517 new routes and plans for Indian carriers to add 1,000 new aircraft, mark significant strides. It's a human-driven leap forward, promising growth and prosperity.”
Dr Vandana Singh, Director Global Corporate Key Account Management -Saudia Cargo
“The government's announcement regarding the construction of an additional 20 million homes under the Pradhan Mantri Awas Yojana- Rural (PMAY) underscores its commitment to promoting inclusivity and ensuring ample living accommodations for all. This initiative is poised to significantly elevate housing standards in rural areas, catalysing growth in the housing sector within these regions. Furthermore, the pledge to introduce a housing scheme specifically catering to deserving sections of the middle class, currently residing in rented houses, slums, chawls or unauthorised colonies, represents a significant stride towards providing a sense of security and pride. Enabling these individuals to purchase or build their own homes not only fulfils their dreams but also contributes to fostering a stronger and more resilient community.”
Piyush Bothra, Co-Founder and CFO, Square Yards
“The Finance Minister underscored the government's recognition of the significance of homeownership. In a notable announcement, the FM said that a housing scheme would announce soon targeting the middle class, extending to those residing in rented houses with the aim of facilitating the construction or purchase of their own homes. This initiative is expected to revitalise the mid housing and affordable housing sector.
Moreover, with the economic scenario improving and the average real income of individuals witnessing a 50 per cent increase, optimistic expectations abound for the real estate sector to thrive across all segments.
An additional favourable development is the government's unwavering focus on infrastructure development, reflected in the 11.1 per cent increase in the outlay for infrastructure. The government's ambitious goal of transforming India into a Viksit Bharat by 2047 is poised to create a conducive environment for the expansion of the overall economy and the real estate sector as well."
Pradeep Aggarwal, Founder and Chairman, Signature Global (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 per cent sustained GDP growth in the next few years. The unwavering commitment to infrastructure development stands as a cornerstone for fostering economic growth, extending tangible impact on the real estate sector in the longer run. The strong 11.1 per cent YoY increase in infrastructure outlay to over Rs 11 trillion signals a steady and significant 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 persistent emphasis on affordable housing unveils a myriad of opportunities for residential developers, as they position themselves to make substantial contributions, aligning 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 resonate with upbeat confidence towards all real estate segments.”
Badal Yagnik, Chief Executive Officer, Colliers India
“Amritkaal as Kartavyakaal’ quoted by Finance Minister during the Interim Budget 2024 is very opportune for realising the vision of Viksit Bharat by 2047. Continued emphasis on Green Growth during this budget augurs very well for achieving Net Zero Goal by 2070. The announcement of a new scheme for propagating bio-manufacturing to introduce environment-friendly alternatives on regenerative principles is a welcome step for the inclusive growth of the farming community. This will further boost the bio economy’s contribution to the nation’s GDP in times to come."
Dr Pramod Chaudhari, Executive Chairman, Praj Industries
"The Interim Union Budget 2024 will create a conducive environment for business growth, innovation and socio-economic development. The announcement of financial assistance for biomass collection and equipment as a part of the Budget is an excellent step that will help build a resilient feedstock supply chain. This will ensure the availability, accessibility and affordability of bio-based feedstock, inspiring investors' confidence in setting up bio-refineries. Continued focus of leveraging captive resource i.e, bio energy in the energy mix is aligned with the vision of energy independence by 2047. These green growth initiatives will facilitate energy security while achieving the climate action objectives of the nation."
Shishir Joshipura, CEO and MD, Praj Industries
“The government’s initiative to facilitate homeownership for the middle class is a commendable step toward inclusive growth. Moreover, the commitment to construct another 20 million houses and providing over 70 per cent of these houses under PM Awas Yojana to women as sole or joint owners not only enhances their dignity but also promotes gender equality in rural housing development. These two schemes are a big positive for the building materials industry. Regency has always been a trusted supplier of tiles for most government schemes and with innovative manufacturing practices will provide natural tiles at lower prices with better durability to the beneficiaries of these two schemes. We welcome these transformative measures for a brighter, more equitable future, and a flourishing ceramic tiles sector.”
Satyendra Prasad Narala, Managing Director, Regency Ceramics
“The framework of the interim Union Budget proposed by the Finance Minister, Government of India, is quite optimistic. The most prominent takeaway for me was the capital expenditure outlay of Rs 11.1 trillion towards infrastructure development. I would consider this generous allocation to be indicative of a boom for the commercial vehicles industry in the near term. The Indian CV industry is already on an upward trajectory and this Capex outlay has the potential to take CV industry volumes higher in the coming 3-5 years, than the previous benchmark.
While the interim budget sets the tone, I keenly look forward to the post-election budget that should encompass a strategy that refines the Indian economy in the next five years, thereby encouraging new investments, boosting employment and providing new business opportunities to various industries. What is also important is a definitive direction on implementation of the Scrappage Policy, a long-term fuel policy for Indian passenger and commercial vehicle industries, charging infrastructure that will pace up the surge of EVs in the country, FAME-III and manufacturing-boosting incentives (PLI), favourable taxation on green vehicles and steps for ease of doing business, to mention a few – these will have a far-reaching effect on the health of the manufacturing industry as we tread on a path that will lead us to realising the dream of Viksit Bharat in 2047.”
Satyakam Arya, – Managing Director and CEO, Daimler India Commercial Vehicles
“The announcement of the India-Middle East-Europe Economic Corridor (IMEC) in "Budget 2024" is a visionary leap forward. This corridor symbolises not just the enhancement of trade routes but heralds a new era of connectivity and economic synergy across continents. For us at Zepth, and for the construction industry at large, IMEC opens up unprecedented opportunities for innovation, collaboration, and growth. It's a testament to India's forward-thinking approach and its commitment to playing a pivotal role in shaping the global economic landscape. We are excited to align our efforts with this monumental project, contributing to and benefiting from the prosperity and progress it promises. This initiative marks a significant milestone in our journey towards global integration and economic development.”
Prasoon Shrivastava, Founder, Zepth
“The 2024 interim budget's increased capital expenditure for infrastructure development is a strategic and commendable move. It promises to accelerate economic growth and positively impact the logistics sector. The emphasis on expanding air connectivity, along with the development of existing airports and the establishment of new ones, is a pivotal step that aligns with our advocacy for efficient multimodal logistics.
The government's commitment to the PM Gati Shakti National Master Plan is encouraging. These initiatives aim to enhance logistics efficiency and reduce costs, aligning with our objectives of service excellence and innovation in logistics. Additionally, the 'Amrit Kaal' initiative, which focuses on empowering MSMEs and boosting their global competitiveness, is set to benefit the broader logistics sector.
FedEx welcomes the forward-looking approach of the 2024 interim budget, reflective of the 'Viksit Bharat' vision. We remain committed to actively contributing to India's growth journey, aligning our efforts with the government's vision for a smarter and more sustainable logistics infrastructure in India.”
Kami Viswanathan, President – MEISA, FedEx Express
“The Interim Budget 2024 is extremely well thought of and clearly a step towards the vision of Developed India @ 2047. The FM has stayed away from populist measures in an election year and needs to be congratulated for the same.
By limiting the deficit to 5.1 per cent of the GDP which should be achievable given the rather conservative tax receipts, fiscal prudence has been given the due importance. Lower borrowings and thus lower borrowing costs will help prioritise domestic spends and guard against external shocks.
The increased capital expenditure of Rs 11.11 trillion, constituting 3.4 per cent of the GDP, bodes well for the infrastructure led GDP growth and will also crowd in the private sector investments as we are now witnessing improvements in consumer sentiments (and demand).
The focus on sustainability through rooftop solarisation, adoption of E-buses, capacity enhancements in renewable energy and coal gasification are a must, given the impact of greenhouse gases.
The continuation of emphasis on women, youth, farmers and the underprivileged through skilling and welfare measures and financial assistance under PM-KISAN is to be lauded. This will ensure that India moves forward as a whole.”
Anil G Verma, Executive Director and CEO, Godrej & Boyce
"The Union Budget 2024's pivotal focus on infrastructure development aligns seamlessly with our vision for enhanced logistics efficiency. The government's commendable commitment to supporting EV manufacturing and charging infrastructure is a significant stride towards sustainable mobility. We appreciate and commend the government’s efforts towards Green Energy, aligned with the Nation’s commitment for ‘net-zero’ by 2070.
The announcement of three major economic railway corridor programs, spanning energy, mineral, and cement corridors, port connectivity corridors, and high-traffic density corridors under the PM Gati Shakti initiative, is poised to be transformative. These corridors not only promise to decongest high-traffic areas but also elevate the safety and speed of passenger trains. The integration of dedicated freight corridors is poised to catalyse GDP growth and significantly reduce logistics costs.
With an increased outlay in FY25 and the expedited development of various infrastructure projects, the government's proactive approach is set to spur economic growth. The India Middle East Europe Economic Corridor announcement is particularly game-changing, strategically positioning India on the global trade map. We eagerly anticipate actively participating in and benefiting from these initiatives, ushering in positive transformations in the logistics and transportation sector."
Rampraveen Swaminathan, Managing Director, CEO of Mahindra Logistics
"The Interim Budget has reinforced the upliftment of farmers with the continuation of PM Kisan Samman Yojana, which annually extends direct financial assistance to a substantial 0.118 billion farmers. The focus on oilseed production and processing marks a significant stride in reducing import dependency while creating new avenues for the growth of the agricultural community. Additionally, the expansion of the crop insurance scheme to benefit 40 million farmers will enhance resilience against unforeseen risks. Moreover, the allocation of financial assistance to support the procurement of biomass aggregation is a commendable move. Encouraging farmers to participate in the bioenergy supply chain not only promotes sustainable agricultural waste management but also opens up new opportunities for income generation. This will catalyse demand for cutting-edge farm machinery and crop management solutions, facilitating the adoption of modern farming practices powered by cutting-edge technologies. The decision to further promote private and public investment in post-harvest activities will help the agricultural ecosystem in India to flourish, encompassing every stage of the value chain, from production to market. Overall, we believe these initiatives will play a pivotal role in driving the agricultural sector towards prosperity and resilience.”
Narinder Mittal, Country Manager & Managing Director – Agriculture Business, CNH India and SAARC
The interim budget injects renewed vigour into the automotive industry by emphasising green energy and infrastructure development with a notable 11.1 per cent increase in capital expenditure. The budget resonates with VECV’s focus 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 diesels, VECV stands ready to provide tested alternate fuel solutions to customers in line with the government's Net-Zero vision.”
Vinod Aggarwal, MD and CEO, VECV
“We are very happy with the Interim Budget 2024-2025 as there is a lot of focus given to green and sustainable energy to promote Blue Economy 2.0. The government’s initiative to offer 10 million households with solar rooftops is a step in the right direction. Their move of empowering and encouraging youth and women will act as a catalyst to the country’s GDP. To boost research and innovation in emerging sectors, various schemes will add value and enable accelerated growth for the overall economy and growth. This interim budget will open many avenues for all sectors while also ensuring every citizen’s development.”
Anil Jain, MD, Refex Group
“We welcome focus on the poor, women, youth and farmers. Uplifting these segments will act as a catalyst to India's aspirations to become a 5 trillion-dollar economy. All these announcements will lead the country to become 'Viksit' Bharat. Alternate sources of energy will continue to drive transformation in consumer tech, especially the power saving sector. The commitment to research and innovation by a Rs one trillion corpus with a 50-year interest-free loan, signifies a phenomenal growth opportunity for our tech-savvy youth, aligning seamlessly with our mission for sustainable technology solutions.”
Meenu Singhal, Regional Managing Director, Socomec Innovative Power Solutions
“Budget 2024 has unveiled the Vision for Viksit Bharat, emphasising a harmonious relationship with nature. The government is actively promoting inclusive sustainable development through initiatives such as rooftop solar as outlined in the Finance Minister's speech. Anticipating new guidelines and incentives under the 'Pradhan Mantri Suryodaya Yojana,' the industry is optimistic about India's rooftop solar energy transition. The commitment to rooftop solarisation and providing free electricity to one crore households is expected to infuse competitiveness and innovation into the solar sector. With the potential to contribute significantly to achieving the government's target of making India net zero by 2070, this boost is poised to generate employment opportunities for youth engaged in manufacturing, installation and maintenance within the solar industry. The interim budget has successfully unlocked the true economic potential of India's rooftop sector.”
Radhika Choudary, Co-Founder, Freyr Energy
“The Union Budget 2024 strategically addresses key aspects with its focus on rooftop solarisation through the Muft Bijli initiative. This move not only aligns with the global trend towards sustainable energy but also marks a significant stride in empowering one crore households with up to 300 units of complimentary electricity monthly. As a prominent player in the electrical cables industry, Finolex Cables is enthusiastic about contributing to this transformative initiative by delivering top-notch products that bolster and elevate solar infrastructure. The government's commitment to fostering inclusive and sustainable development, encapsulated in the 'Reform, Perform, and Transform' mantra, deeply resonates with our business principles. We eagerly anticipate engaging with the government and collaborating with stakeholders to build consensus, steering the nation toward the implementation of next-generation reforms that foster robust growth.
The focus on MSMEs aligns seamlessly with Finolex Cables' pivotal role in supporting infrastructure development. Furthermore, the budget's acknowledgment of the housing sector, exemplified by initiatives such as the Pradhan Mantri Awas Yojana and the Housing for Middle-Class scheme, sets the stage for Finolex Cables to make substantial contributions to the nation's infrastructure landscape. In essence, the budget appears poised to cultivate an environment conducive to Finolex Cables' success, positioning us to play a crucial role in driving the country's economic growth.
Further, we welcome the government's prudent fiscal approach, as reflected in the reduced borrowing outlined in the interim budget. The resultant decline in bond yields is a positive signal, offering an advantageous environment for the private sector. Lower interest rates on bonds present a lucrative opportunity for companies like ours, as it facilitates the expansion and growth of businesses. This move is not just beneficial for private enterprises but is a commendable stride towards fostering economic development and strengthening the nation's financial landscape."
Mahesh Viswanathan, CFO, Finolex Cables
The India-Middle East-Europe Economic Corridor is expected to be a landmark infrastructure project and serve as a gateway to foster greater economic prosperity, political cooperation, thus setting an unmatched precedent in bridging and enhancing world trade. The corridor entailing an interplay of shipping and railway linkages will give a boost to maritime trade, enhance digital connectivity, and go a long way for the entire region to develop as a powerhouse of economic activity. Leveraging on social, cultural and natural resources, this corridor has innate potential in transforming the dynamics of global flow of capital and business." Sankey Prasad, CMD India and Middle East Project Leaders, Colliers
"We appreciates the government’s continuing efforts in infrastructure development as outlined in the 2024 budget. Strategic urban planning under the satellite towns development has to be adopted and implemented in order to alleviate pressure in tier 1 cities like Mumbai, Delhi and Bangalore. The 40 per cent capital allocation on roads, highways and railways further reinforces the government's commitment to transformative infrastructure development. The National Highways Authority has been doing exceedingly well with the number of kms being constructed every day. This will further expand connectivity between urban centres and surrounding satellite towns giving a boost to housing and further increasing the contribution to GDP from the current 7 to 10 per cent and above. As infrastructure expands to satellite towns, land prices and construction costs become increasingly viable for real estate developers. Through this, we shall be able to deliver housing projects that suit aspirational middle-income households within reach of major urban employment hubs. This not only provides employment opportunities in the construction sector but also reduces pollution especially from cities like Delhi and improves living standards over time by decongesting tier 1 cities. We appreciate the government's vision in promoting satellite town development through prudent infrastructure spending. This budget sets the stage for equitable and sustainable urbanisation. We look forward to even greater emphasis on this in future budgets.
Pavan Kumar, Founder & CEO, White Lotus Group
"This year’s budget is a people-centric budget 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 110 million 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 Kasuhalya 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.”
Puneet Vidyarthi, Head of Marketing and Business Development – India and SAARC, Case Construction Equipment & President, Rural Marketing Association of India
Titagarh is ready to embrace the transformative vision in this year's interim budget! Prioritising people, the focus on railway corridors and PM Gati Shakti projects is a significant stride towards a developed India by 2047. Converting 40,000 rail coaches to Vande Bharat standards ensures comfort, convenience and safety. 'Naya Viksit Bharat' travel sets a new paradigm, aligning with the vision of a reliable and updated transportation network.
Umesh Chowdhary, VC & MD, Titagarh Rail Systems
