Industry Leaders Commend Budget’s Focus on Affordable Housing, Job Creation, and Infrastructure
The Union Budget 2024-2025, presented by Finance Minister Nirmala Sitharaman, has garnered significant attention for its multifaceted approach to urban development, job creation, and economic growth. The budget emphasizes the government’s commitment to making housing more affordable, enhancing infrastructure, and supporting key sectors through strategic investments and policy reforms. Industry leaders from various sectors have praised the budget’s initiatives, highlighting its potential to drive economic prosperity and improve the quality of life for millions of Indians.
Mr. Prashant Sharma, President, NAREDCO Maharashtra, commented, “We commend the Union Budget 2024-25 for its comprehensive approach towards job creation and boosting consumption, which are positive developments for the real estate sector. The Finance Minister’s announcement of a PM Package with five schemes focused on employment and skilling, with an allocation of Rs 2 lakh crore, and a significant provision of Rs 1.48 lakh crore for education, employment, and skilling, is a welcome move. These initiatives will undoubtedly create a ripple effect, enhancing the economic landscape and increasing demand for residential and commercial properties.”
Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Vice President, CREDAI-MCHI, shared his insights, “We wholeheartedly welcome the Finance Minister Nirmala Sitharaman Union budget 2024-25 which reflects market expectations, promoting an atmosphere conducive to economic growth. The budget emphasizes the needs and aspirations of the Garib, Mahilayen, Yuva, and Annadata, highlighting the government’s primary priorities, and we applaud the government for the same. Keeping Viksit Bharat in mind, the Finance Minister mentioned urban development and infrastructure among some of the key focus areas of the government. An outlay of 10 lac crore for urban housing under PM Awaas Yojana is a welcome move as it will give a significant boost in providing housing across major cities in the country. With a huge shift in the population moving from rural to urban areas, this move will immensely benefit in providing a roof over the head of our urban population.”
Mr. Vedanshu Kedia, Director, Prescon Group, remarked, “We are pleased with Finance Minister Nirmala Sitharaman’s budget for 2024-25, which addresses the aspirations and needs of both urban and rural India. Key focuses include urban development and infrastructure under Viksit Bharat. The budget includes a reduction in stamp duty for women buying houses to encourage their participation in property ownership. States with high stamp duty rates have been encouraged to moderate them, with further reductions considered for properties bought by women. The increase of LTCG (Long-Term Capital Gains) for equities will have a spillover effect as money will now start chasing property investments that provide more stable returns. The provision for central government assistance to state governments who are focusing on infrastructure development will bore well for the real estate industry.”
Mr. Rohan Khatau, Director, CCI Projects Private Limited, commented, “This was a good budget for the real estate sector presented by the Finance Minister Nirmala Sitharaman which echoed the sentiments of the industry and home buyers. The government’s 2.2 lakh crore initiative under the PM Awas Yojana-Urban, aims to enhance housing affordability for one crore families, reflecting a sincere commitment to inclusive urban growth over the next five years.”
Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers, noted, “The Union Budget 2024-25 announced by Finance Minister Nirmala Sitharaman is a promising step towards holistic development, with a keen focus on employment, skilling, and infrastructure, which are crucial for the real estate sector. The emphasis on women-led development, with an allocation of more than Rs 3 lakh crore for schemes benefiting women and girls, reflects a progressive vision for inclusive growth. The encouragement for states to moderate high stamp duty rates and the proposed reductions for properties purchased by women are commendable. These measures will not only make property transactions more affordable but also promote gender inclusivity in property ownership.”
Mr. Samyak Jain, Director, Siddha Group, appreciated the government’s focus on housing affordability, “The government’s interest subsidy scheme for urban housing is a positive step towards making home ownership more accessible. The PM Awaas Yojana for one crore poor and middle-class families with central assistance of 5 years will not only push the real estate market but also stimulate all other industries which are indirectly co-related with the real estate market.”
Mr. Himanshu Jain, VP – Sales, Marketing & CRM, Satellite Developers Private Limited (SDPL), emphasized the budget’s positive impact on the sector, “The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, reflects the Modi government’s focus on youth and its commitment to job creation and boosting consumption, which are positive developments for the real estate sector. The significant push of ₹2.2 lakh crore under the PM Awas Yojana-Urban to make housing more affordable is a commendable initiative that will cater to the housing needs of one crore poor and middle-class families. This substantial investment of ₹10 lakh crore over the next five years is expected to stimulate demand and drive growth in the real estate market.”
Impact on the Urban Housing Sector
“We look forward to welcoming the points on the urban housing sector from FM Shrimati Nirmala Sitharaman’s first Union Budget 2024-2025 of Modi 3.1. We appreciate the steps taken by this year’s Union Budget 2024-2025 in the housing market. Listed as Priority 5, FM Sitharaman spoke on services for 100 large cities for urban development. In addition, the government has allotted ten lakh crore rupees for one crore houses for the urban poor. These are advanced and modern policies for ensuring that all people have adequate shelter, a basic need of human life.
The government has also slashed stamp duty for women, which will now empower more women to become homeowners, giving them freedom and power to take control of their own lives. This reflects the third pillar of the Viksit Bharat scheme, with power being given to Mahila (women) for all-encompassing equitable development.”
— Mr. Prashant Sharma, President, NAREDCO Maharashtra
Empowering Women and Advancing Urban Housing
“We look forward to welcoming the points on the urban housing sector from FM Shrimati Nirmala Sitharaman’s first Union Budget 2024-2025 of Modi 3.1. We appreciate the steps taken by this year’s Union Budget 2024-2025 in the housing market. Listed as Priority 5, FM Sitharaman spoke on services for 100 large cities for urban development. In addition, the government has allotted ten lakh crore rupees for one crore houses for the urban poor. These are advanced and modern policies for ensuring that all people have adequate shelter, a basic need of human life.
The government has also slashed stamp duty for women, which will now empower more women to become homeowners, giving them freedom and power to take control of their own lives. This reflects the third pillar of the Viksit Bharat scheme, with power being given to Mahila (women) for all-encompassing equitable development.”
— Mr. Dhaval Barot, MD & CEO of Bharat Realty Venture Pvt Ltd
Job Creation and Economic Boost
“We commend the Union Budget 2024-25 for its comprehensive approach towards job creation and boosting consumption, which are positive developments for the real estate sector. The Finance Minister’s announcement of a PM Package with five schemes focused on employment and skilling, with an allocation of Rs 2 lakh crore, and a significant provision of Rs 1.48 lakh crore for education, employment, and skilling, is a welcome move. These initiatives will undoubtedly create a ripple effect, enhancing the economic landscape and increasing demand for residential and commercial properties.
The government’s commitment to making housing more affordable, with a Rs 2.2 lakh crore push under the PM Awas Yojana-Urban, is a significant step forward. Addressing the housing needs of one crore poor and middle-class families with an investment of ₹10 lakh crore, including central assistance of ₹2.2 lakh crore over the next five years, reflects a robust and inclusive approach to urban development.
The proposal to encourage states to moderate high stamp duty rates and consider further reductions for properties purchased by women is a progressive measure. Incorporating these as essential components of urban development schemes will promote greater inclusivity and accessibility in the housing market.
The GST reforms, which have eased compliance and reduced tax burdens, have been instrumental in driving economic growth. The proposed rationalization of the tax structure, coupled with the new tax regime changes, including the increased standard deduction, will further benefit the salaried class and boost disposable income, positively impacting housing demand.
The sanctioning of 12 industrial parks under the National Industrial Corridor Development Programme, the facilitation of rental housing with dormitory-type accommodation for industrial workers in PPP mode, and the formulation of transit-oriented development programmes for 14 large cities are strategic moves that will enhance urban infrastructure and support industrial growth.
With significant infrastructure investments continuing over the next five years, including a provision of ₹11,11,111 crore for capex, we anticipate a multiplier effect that will drive private investment in infrastructure. The introduction of a market-based financing framework and simplified rules for Foreign Direct Investments will further facilitate economic growth and stability.
Overall, the Union Budget 2024-25 is a forward-looking and balanced approach towards Viksit Bharat that addresses key areas of employment, housing, urban development, and economic growth. We at NAREDCO Maharashtra look forward to the positive impact these measures will have on the real estate sector and the overall economy.”
— Mr. Prashant Sharma, President, NAREDCO Maharashtra
Aaditya Sharda, Co-founder, Infra.Market
“The Union Budget 2024-25 emphasizes infrastructure and urban development, offering significant opportunities for startups and construction companies through increased capital spending and support for state and private investments. Initiatives like ‘Cities as Growth Hubs’ pave the way for startups to innovate and contribute to India’s growth. The abolishment of the Angel tax for all investors will strengthen the startup ecosystem, boost entrepreneurship, and spur innovation across sectors. The budget’s overall direction sets a positive tone, and government initiatives to support MSMEs, including a credit guarantee scheme and a digital footprint-based credit assessment model, align with efforts to enhance infrastructure development and urban growth. At Infra.Market, we look forward to leveraging these opportunities to drive innovation in urban development and contribute to India’s transformative journey.”
Support for Economic Growth and Inclusivity
“We wholeheartedly welcome the Finance Minister Nirmala Sitharaman Union budget 2024-25 which reflects market expectations, promoting an atmosphere conducive to economic growth.
The budget emphasizes the needs and aspirations of the Garib, Mahilayen, Yuva, and Annadata, highlighting the government’s primary priorities, and we applaud the government for the same. Keeping Viksit Bharat in mind, the Finance Minister mentioned urban development and infrastructure among some of the key focus areas of the government.
An outlay of 10 lac crore for urban housing under PM Awaas Yojana is a welcome move as it will give a significant boost in providing housing across major cities in the country. With a huge shift in the population moving from rural to urban areas, this move will immensely benefit in providing a roof over the head of our urban population. The government has announced a Rs 2.2 lakh crore initiative to enhance housing affordability: Through the PM Awas Yojana-Urban, the housing requirements of one crore economically disadvantaged and middle-class families will be met, supported by an investment of ₹10 lakh crore. This comprehensive plan includes ₹2.2 lakh crore in central assistance over the next five years.
The 2.66 lac crore allocation for rural development and infrastructure will benefit people in rural India to become self reliant and uplift their living standards. This will discourage them from moving into urban areas and encourage overall development of the country.
Rental housing with dormitory type accommodation for industrial workers has been proposed under the PPP model. This is a step in the right direction, as it will provide affordable housing options for the industrial workers, who are at the bottom of the housing pyramid.
The Finance Minister stated that stamp duty for women buying a house has been lowered. This will encourage women to come forward and empower them in the home buying process.
The Finance Minister highlighted ongoing significant infrastructure investments, set to continue over the next five years. This year, ₹11,11,111 crore has been allocated for capital expenditure, amounting to 3.4% of GDP. States will be encouraged to match this scale of support based on their priorities. Private investment in infrastructure will be encouraged through Viability Gap Funding and a new market-based financing framework.
The Union Budget 2024-25 embodies a progressive strategy aimed at addressing crucial sectors while propelling the nation towards a more sustainable and promising future.”
— Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Vice President, CREDAI-MCHI
AltGraaf Jayaprakash, K, Chief Growth Officer, AI Growth Limited (Parent company of altGraaf):
“We are delighted by the abolition of angel tax. This will boost investments in the startup ecosystem and create jobs. The government’s move towards parity in taxation between financial and non-financial assets, coupled with credit boosts to the MSME sector and corporate tax rate reductions, promotes job and economic growth.”
Ravi Kaushik, Executive Director, Head of Asia Investments, Flourish Ventures:
“This is a very progressive step in the right direction by the finance minister. This will not only open up opportunities for startups to freely raise capital from India’s thriving middle class but also significantly reduce disputes and tax uncertainties. We wholeheartedly welcome this step.”
Mr. Prem Kumar Vislawath – CEO and Founder, Marut Drones:
“The allocation of ₹1.52 lakh crore for agriculture and allied sectors by the finance minister underscores a pivotal commitment to bolstering India’s agricultural resilience. The emphasis on developing climate-resistant varieties and introducing 109 new high-yielding varieties is a forward-looking stride towards sustainable agriculture. Exempting lithium imports from customs is a bold step demonstrating India’s commitment to strengthening the drone manufacturing sector.”
Mr. Ankit Gupta, Director, Ledure Lightings:
“By prioritizing the manufacturing sector and introducing a scheme that supports first-time employees through EPFO contributions, the government is not only addressing immediate employment needs but also laying a strong foundation for long-term growth. The allocation of ₹1.48 lakh crore for education, employment, and skilling further emphasizes the government’s dedication to these critical areas.”
Ms. Sanjana Desai, Executive Director, Mother’s Recipe:
“The proposal to abolish the angel tax for all classes of investors will significantly bolster the entrepreneurial spirit and support innovation within our industry. Additionally, the increase in the standard deduction for salaried employees will enhance consumer purchasing power, which is beneficial for our brand as it may lead to increased demand for our products.”
The Union Budget 2024-2025 sets a promising trajectory for India’s urban development and economic growth. By addressing the critical needs of housing, infrastructure, and job creation, the budget lays a solid foundation for a more inclusive and prosperous future. The positive reception from industry experts underscores the budget’s potential to transform key sectors and uplift the socio-economic landscape of the nation. As the government rolls out these initiatives, the collaborative efforts of various stakeholders will be crucial in realizing the vision of a ‘Viksit Bharat.’