Elevating Indian Real Estate: Union Budget 2024’s Blueprint for Prosperity
In the wake of the Union Budget 2024, the Indian real estate sector stands on the cusp of a transformative era. With strategic allocations and reforms, the budget aims to inject vitality into the sector, promising a future of robust growth, enhanced affordability, and increased investment. The government’s commitment to bolstering infrastructure, expanding affordable housing, and streamlining urban development has been met with widespread acclaim from industry leaders, marking a significant step towards realizing the vision of a ‘Viksit Bharat’ by 2047.
Mr. Sandeep Runwal, President, NAREDCO Maharashtra, expressed his enthusiasm for the interim budget, highlighting its comprehensive vision aimed at fostering inclusive growth and sustainable development. “The focus on transforming India into ‘Viksit Bharat’ by 2047 through initiatives like the PM Awas Yojana Grameen is a testament to the government’s commitment to the real estate sector,” he stated.
Mr. Ankit Gupta, Director, Ledure Lightings
“As our FM Nirmala Sitharaman outlaid the Modi 3.0’s first budget, and the 13th Budget of the Modi government, the outlaid a bold and forward-thinking approach to economic revitalization and job creation. 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. This initiative is a testament to the government’s commitment to fostering development in labour-intensive manufacturing and supporting MSMEs. It reflects a strategic vision to energize the economy and create meaningful opportunities for the 30 lakh youth entering the workforce. The introduction of a credit guarantee scheme for MSMEs, facilitating term loans for machinery and equipment without collateral, is a significant move. It empowers small and medium enterprises to scale up and compete globally. The allocation of ₹1.48 lakh crore for education, employment, and skilling further emphasizes the government’s dedication to these critical areas.
The emphasis on higher participation of women in the workforce ensures that more women can contribute to and benefit from the economic growth. Additionally, the new centrally sponsored skilling scheme, which aims to skill 20 lakh youth over the next five years, is a much-needed intervention. Upgrading 1,000 Industrial Training Institutes in collaboration with state governments and industry will ensure that the course content and design meet the evolving needs of the industry. We welcome the new scheme to skill 20 lakh youth through enhanced training institutes and industry-aligned curricula. The substantial ₹3 lakh crore allocation for women-centric initiatives demonstrates the government’s commitment to boosting women’s economic participation and supporting women-led enterprises, paving the way for inclusive growth. Ledure Lightings is really excited about these initiatives, as they align perfectly with our mission to contribute to India’s manufacturing growth and provide quality employment opportunities. We look forward to leveraging these measures to enhance our operations and support the nation’s economic development while promoting a more inclusive workforce.”
Mr. Sahil Saharia, CEO, Shristi Infrastructure Development Corporation Limited, commended the government’s dedication to addressing the housing needs of the middle class. “The initiative to facilitate homeownership reflects a significant stride towards promoting affordable housing and stimulating the real estate sector,” he commented.
Mr. Arya Sumant, Managing Director, Eden Realty, welcomed the government’s decision to launch a scheme for the middle class, emphasizing its potential to unlock India’s tourism and hospitality potential alongside revitalizing the real estate industry.
Mr. Rishi Jain, Managing Director, Jain Group, appreciated the budget’s focus on long-term solutions over populist measures. “The emphasis on infrastructure and rural development acts as a catalyst for the real estate industry, promising a brighter future for all stakeholders,” he noted.
Mr. Sanjay Jain, MD, Siddha Group, expressed his satisfaction with the budget’s balanced approach. “The commitment to affordable housing and infrastructure development showcases the government’s resolve to build a stronger and more inclusive India,” he stated.
The Union Budget 2024 has laid down a roadmap for the real estate sector that is not only ambitious but also pragmatic. By prioritizing infrastructure, affordable housing, and sustainable urban development, the government has set the stage for a real estate boom that promises to contribute significantly to India’s economic growth. The sector’s stakeholders are optimistic, viewing the budget as a catalyst that will unlock the full potential of Indian real estate, making it a cornerstone of the nation’s journey towards becoming a developed economy by 2047.
Mr. Amit Tandon, CEO & Managing Director, Asia Shipping India
“As our FM Nirmala Sitharaman outlaid the Modi 3.0’s first budget, and the 13th Budget of the Modi government, the FM brought the focus on the Purvodaya Plan, an all-round development of the eastern region of the country covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh covering human resource development, infrastructure, and generation of economic opportunities to make the region an engine to attain Viksit Bharat.
We commend the government for its forward-looking budget, particularly the node to the Industrial Corridors of Amritsar-Kolkata, Gaya, Kopparthy node on the Vishakhapatnam-Chennai and Orvakal node on Hyderabad-Bengaluru, catalysing the industrial development of the eastern region and the reforms in ownership, leasing, and flagging, are commendable and will significantly boost the industry’s competitiveness and employment opportunities. The government’s support in the development of road connectivity projects, Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, Bodhgaya, Rajgir, Vaishali, and Darbhanga spurs, and additionally the 2-lane bridge over river Ganga at Buxar will open new avenues of opportunities in the region.
By improving these frameworks, the government is laying the groundwork for a stronger and more dynamic freight forwarding, shipping and logistics sector. The proposed simpler tax regime for domestic cruise tourism and the comprehensive review of customs duties are welcome measures that will support domestic manufacturing and boost export competitiveness. These initiatives reflect a strong commitment to strengthening India’s position in the global shipping sector and addressing key economic challenges. Asia Shipping India is enthusiastic about these developments and is committed to working collaboratively with stakeholders to ensure their successful implementation. We look forward to contributing to the continued growth and global standing of India’s shipping industry.”
Mr. Aman Choudhary, Executive Director Marketing, Anmol Industries Limited
“The Union Budget 2024-25 has laid a solid foundation for the FMCG sector with its focus on boosting rural demand and increasing disposable income. The allocation towards improving infrastructure and logistics will greatly enhance supply chain efficiency, enabling faster and more efficient distribution of goods. We appreciate the government’s commitment to fostering a business-friendly environment and believe these measures will spur growth, innovation, and competitiveness in the FMCG industry, ultimately benefiting consumers and businesses alike.”
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. Additionally, the promotion of farmer producer organizations, cooperatives, and startups heralds a new era of inclusive growth and innovation in the agricultural sector. Exempting lithium imports from customs is a bold step demonstrating India’s commitment to strengthening the drone manufacturing sector. Lithium, crucial for drone battery production, will now bolster domestic drone manufacturing, underlining the government’s support for this industry. The abolition of the Angel Tax for investor classes is a significant boost for startups, affirming the government’s unwavering support for entrepreneurship and fostering a conducive investment environment. However, we look forward to enhanced subsidies on agricultural machinery, including drones, as a critical step towards modernizing our farming practices.”
Mr. Satyendra Prasad Narala, Managing Director, Regency Ceramics
“The Finance Minister’s announcement of a ₹10 lakh crore investment in urban housing through PMAY Urban 2.0 is a significant boost for India’s real estate sector and related industries such as Ceramics and Tiles Manufacturing. This substantial infusion, including ₹2.2 lakh crore to rejuvenate the affordable housing segment, is expected to drive demand for construction materials and stimulate growth in sectors like ceramics, fostering innovation in construction technologies for affordable housing. Moreover, the enhanced focus on middle-class families is likely to encourage diverse housing types and urban design solutions. In tandem with this, the focus on MSMEs is commendable. The introduction of a credit guarantee scheme for MSMEs in the manufacturing sector, along with support for E-commerce export hubs, will fuel growth and competitiveness. However, while welcoming these measures, we urge additional support for sectors like Ceramics to ensure sustainable growth.”
Mr. Anant Jain, Head of Customer Success – India, GfK – an NIQ company
“In the Union Budget 2024, the Finance Minister’s focus on uplifting the poor, women, youth, and farmers aligns with India’s aspirations towards a developed nation. It reflects the government’s commitment to ‘Viksit Bharat’ and is poised to benefit the tech sector. The proposed reduction in the Basic Customs Duty (BCD) on mobile phones, mobile PCDA (Printed Circuit Design Assembly), and mobile chargers to 15% is expected to make mobile devices and accessories more affordable, thereby boosting consumer demand and driving growth in the tech industry. Additionally, the increase in duty on printed circuit board assemblies (PCBA) for specific telecom equipment from 10% to 15% aims to encourage local manufacturing. Government’s prioritization of jobs, agriculture, and the energy sector will provide long-term growth opportunities to the tech & durables sector.”
