Finance Minister Nirmala Sitharaman unveiled the Union Budget 2024 in Parliament today. What are the pivotal highlights pertinent to the construction and infrastructure sector, and how will this budget propel industry growth? Let’s delve into the reactions of industry experts.

Sunjay J Kapur, Chairman, Sona Comstar and Chairman, CII Europe Committee: “The Union Budget 2024 builds on India’s proactive approach towards transformative growth, especially fostering collaboration and innovation across manufacturing, infrastructure, and technology sectors. With a focus on skill-building and concerted efforts to drive research and development, India aims to catalyse innovative solutions, utilizing new technologies and data to fuel growth, particularly in emerging sectors. With a significant increment in capital expenditure target for FY25, the budget emphasizes on the enhancement of infrastructure for multi-modal connectivity, in addition, it promises a sustainable and efficient mobility ecosystem. Notably, the budget supports the expansion of electric mobility by boosting EV manufacturing and charging infrastructure and promoting e-buses, aligning with global decarbonization efforts. It will provide impetus to make electric vehicles more accessible to the people of India. In addition, the rooftop solarization of 1 crore households will help the country move towards cleaner energy. By envisioning an ecosystem conducive to create and innovate, this budget paves the way for transformative growth, ensuring India’s prowess resonates worldwide. A budget blueprint that focusses on India’s ambition to emerge as Vikshit Bharat by 2047.”

Ajit Venkataraman, MD, Finolex Industries Ltd: “We applaud Finance Minister Smt. Nirmala Sitharaman for presenting a visionary Interim Budget 2024, setting the stage for an inclusive development. The significant focus on infrastructure and housing, especially the PM Awas Yojana Grameen, achieving 3 crore houses and planning 2 crore more in the next 5 years, resonates with Finolex Industries’ commitment to sustainable communities. The farmer-centric initiatives like PM Kisan Samman Yojana and PM Fasal Bima Yojana showcase the government’s dedication to our ‘Anna Data’. Finolex Industries anticipates these initiatives to have a positive impact and looks forward to participating in these transformative initiatives, reinforcing our belief in a prosperous and empowered India by 2047.”

Chandrashekar V, MD, and CEO of GMMCO: “The 11.11 lakh crore strong infrastructure push, supported by the three railway corridors, as well as the continued focus on housing for the middle class, underscores the government’s unrelenting attention towards bolstering domestic infrastructure. This push is expected to spawn its own ecosystem of ancillary players, equipment OEMs, and heavy machinery players. GMMCO is uniquely poised to leverage the emerging opportunities and play a significant role in contributing to India’s infrastructure push, in sync with PM Modi’s vision of Atmanirbhar Bharat.”

Rajesh Shah, Chairman & MD at EUROBOND: “The team at Euro Panel Products Limited is enthralled by the new interim budget of 2024-25, specifically in the infrastructure and railways sector. The government’s decision to transform 40,000 railway coaches to suit the specifications of the Vande Bharat Express shows the commitment of the government to take the railways to the next era, something we support wholeheartedly. Added to that, the project to expand the major railways infrastructures including the Metros and Namo Bharat to upcoming metropolitans closely aligns with our mission for comprehensive development in those areas. The capex target of Rs. 11.1 lakh crore for FY25, along with a 11.1 percent increase shows volumes to the Prime Minister’s dedication towards establishing state-of-the-art infrastructures throughout the country and Eurobond remains steadfast in its commitment to championing the nation’s ambitious infrastructure development goals, supporting the burgeoning momentum with unwavering dedication to innovation and cutting-edge technology.”

Satish Kumar Agarwal, Chairman and Managing director of Kamdhenu Limited: “The budget addressed one of the most important needs of the middleclass that is housing. The government’s commitment to build 20 million houses for poor in the next five years and the announcement of a scheme to help deserving sections of the middle class to buy or build their own houses will all contribute to high demand for construction inputs. The solar rooftop project for one  crore houses, while providing financial savings will also ensure easier access to energy for a better quality of life along with demand of structural steel products to build structure for solar rooftop.”

Vikramjiet Roy, Managing Director, Maccaferri India: “We welcome the government’s focus on infrastructure creation which is expected to be an economic force multiplier and also lead to a positive cascading effect on ancillary industries and lend to job creations. The multifarious initiatives to boost agricultural productivity is also a part of the piece. This infrastructure push, which entails development of triple railways corridors as well as well as the construction of airports is expected to catalyse investments and spur demand in sectors such as steel, cement, iron ore and transportation. Maccaferri is uniquely poised to partner with the government in this transformative journey which is ultimately expected to propel India into the growth orbit of the top three economies of the world.”

Akshat Khetan, Founder, AU Corporate and Legal Advisory Services Limited (AUCL): Looking ahead, the vision for ‘Viksit Bharat’ envisions a prosperous and harmonious India with modern infrastructure, providing opportunities for all citizens. The government plans to continue economic policies fostering growth, inclusive development, and skill enhancement. Key areas of focus include housing, healthcare, agriculture, green energy, technological advancements, aviation, and infrastructure development. The emphasis on research, innovation, and deep-tech technologies reflects a commitment to technological growth. Furthermore, the government aims to address societal changes, including population growth challenges with a commitment to strengthening the economy, creating opportunities, and realizing the dream of a developed India by 2047.

In terms of fiscal management, the statement highlights the success of the government in delivering sustained economic growth, reducing fiscal deficit, and attracting foreign direct investment. Tax-related achievements, such as the significant increase in direct tax collections and the positive impact of the Goods and Services Tax (GST), are acknowledged. It emphasizes the government’s commitment to providing tax relief to start-ups and extending tax benefits to sovereign wealth or pension funds. Additionally, steps are announced to improve tax payer services, including the withdrawal of outstanding direct tax demands up to specified amounts, providing relief to a large number of taxpayers

Kavita Shirvaikar, CFO & Whole time Director, Patel Engineering Ltd: “In a pivotal stride towards national development, Union Budget 2024 manifests a commendable 11.1 percent surge in the infrastructure budget, scaling an impressive 11,11,111 crore. This ambitious endeavour reflects the government’s unwavering commitment to fortify critical sectors resulting, in fastrack and timely execution of complex infra projects. With the infrastructure outlay poised to reach 3.4 percent of the nation’s GDP, the budget signifies a strategic investment, laying a robust foundation for economic growth and sustainable progress. Additionally, the budget strategically leverages a significant threefold increase in capital expenditure over the past four years, propelling substantial economic and infrastructure growth with a powerful multiplier effect”. 

Aryaman Vir, CEO of WiseX: “The FM’s interim budget is balanced from the point of view of adhering to fiscal prudence, boosting infrastructure growth, and prioritizing focus on four key sections of the economy – the poor, women, youth, and farmers.

While the silence on real estate specifics is noticeable, the increased allocation for infrastructure is a promising indicator for the economy’s overall health and an indirect boon for the real estate sector. The focus on reducing the fiscal deficit to below 4.5 percent by FY26 offers stability, likely to enhance investor confidence in Indian equities and bond markets. Of particular interest is the substantial ₹1 lakh crore innovation fund, a significant stride towards fostering technological growth. This is a beacon of optimism for startups and fintech firms, signaling strong governmental support for their crucial role in shaping India’s economic future”

Prashant Daftary, Partner, N.A. Shah Associates: “Increased capital outlay on infrastructure and railways would ensure that the momentum on the capex spending and infra development continues.”

Ratheesh D, Director, CABT Logistics– First Mile, Mid Mile & Last Mile services: “Logistics gets a shot in the arm with Budget 2024! The visionary conversion of 40,000 rail bogies to Vande Bharat standards and doubling of airports to 149 signal a major infrastructure push. This, coupled with the procurement of 1,000 new aircraft by Indian carriers, creates a powerful ecosystem for seamless freight movement. FM Nirmala Sitharaman’s announcement of three major railway corridors and dedicated economic rail corridors for specific commodities showcases a proactive approach to tackling logistics bottlenecks. These initiatives are poised to significantly reduce logistics costs (currently at 12 percent of GDP), a major pain point for the industry. The focused strategy on freight movement aligns seamlessly with the National Rail Plan and promises to catapult India’s manufacturing competitiveness by ensuring efficient and cost-effective delivery of goods.” 

Shiwang Suraj, Director & Founder of InfraMantra: “The budget’s plan to build two crore more houses in the next five years is a big step to help low and middle-income people in India find homes. With a new program to help middle-class people own homes, we’re seeing big changes in housing. These efforts show how important it is for everyone to have a home and how new ideas in building can make our cities better places to live.”

Ashish Puravankara, Managing Director, Puravankara Limited: “The interim budget presented today is consistent with previous measures and will continue to scale up investment in infrastructure and transit-oriented development. The significant rise in the infrastructure outlay to Rs 11.11 lakh crore for FY25, which amounts to 3.4 percent of the GDP, represents promising progress towards robust nation-building. The government’s focus will lead to strong growth, contributing towards the dream of a developed India by 2047, assisted by ‘GDP’ – Governance, Development and Performance.

The financial prudence being displayed in bringing down the fiscal deficit to an estimated 5.1 percent is fantastic. It shows that the government is committed to strengthening the economy, controlling inflation and, therefore, interest costs while maintaining growth with investments in infrastructure.

For real estate, the announcement to help the middle class living in rented homes, slums, and unauthorised colonies buy or build their own houses will provide further impetus to the strong housing demand. Increased focus on transit-oriented development and expansion of metro rail systems in cities, along with strengthening the electric vehicle ecosystem, will encourage people to settle in the peripheries of the urban centres. A slew of measures announced to achieve ‘net zero’ goals by 2070 will also go a long way towards creating sustainable cities. Other proposals, such as the development of iconic tourist centres and long-term interest-free loans to States, will help the commercial real estate sector.

Overall, we look forward to the final budget post-elections and are hopeful that the government will announce more policy initiatives to encourage housing for all further – both for buyers and real estate developers.”

Ankush Kaul, chief business officer – Ambience Group: “The increased spending proposed by the government on infrastructure will add to the country’s general economic prosperity and drive the demand for residential, commercial and retail spaces. The increase in CAPEX will provide a fillip to the infrastructure development, and lead to real estate development.”

Ashwinder R. Singh, Co-Chairman, CII, NR Committee for Real Estate, CEO Residential at Bhartiya Urban: “Commending the government’s forward-looking budget, the emphasis on affordable housing and infrastructure initiatives will ignite demand and unlock sector potential. The proposed Development Financial Institution adds a critical financing dimension. This budget sets the stage for robust growth, job creation, and a resilient infrastructure ecosystem.”

Nayan Raheja of Raheja Developers: “The increased spending on infrastructure, while on the one hand, increasing prosperity, will also boost economic prospects, which will encourage both the housing and commercial realty segments. Further, increase in the CAPEX outlay for 2025, by 11.1 percent to 11.11 lakh crores for 2025, as announced by the Finance Minister in her budget speech are also expected to aid the growth the real estate development.”

Abhay Deshpande, Founder and CEO, Recykal: “As we reflect on the latest budget announcement, the monumental allocation of Rupees 11 lakh crores towards infrastructure and the resounding encouragement of domestic and global investments underscore India’s resolute commitment to economic progress. With a strategic focus on bolstering the MSME sector, lowering duty cuts, and fostering an environment conducive to manufacturing, India’s potential as a global economic powerhouse is resoundingly clear. Moreover, the emphasis on comprehensive development and the welfare-centric ‘Sabka Prayas’ initiative further exemplify the government’s dedication to holistic growth. This budget has set the stage for transformative change and prosperity in the Indian economy.”

Dr. Vikram Mehta, MD of SPARTAN: “Vikram Mehta, the Managing Director of SPARTAN Engineering Industries, has acknowledged the government’s continuous efforts to protect the environment by encouraging solarization in households. Under the leadership of Prime Minister Modi, India has seen tremendous economic growth on a global platform. Although there is no big announcement in this year’s budget, it continued its focus on infrastructure upgrades, which will benefit real estate growth. The growth is not limited to the top cities, but it has an immense impact on urbanization in Tier 2 and Tier 3 cities across the country. With this rapid growth, I wish real estate should also focus on building safer and fire-free infrastructure for the people of India.”

Darshan Ghodawat, CEO and Managing Director, AVA Global Logistics LLP: As we look forward to the Union Budget, the logistics sector sees it as a significant opportunity to enhance productivity, formalization, and overall growth. The upcoming budget should align with the government’s focus on boosting domestic manufacturing. This necessitates preparing the logistics sector for increased service integration, substantial growth in fulfillment logistics, and a greater reliance on multi-modal transportation. Anticipating the budget, our expectation is for a concentrated effort on fortifying logistics and related infrastructure. Speeding up connectivity projects in different economic zones will be pivotal, aiming to reduce logistics costs and time, ultimately boosting productivity and the overall economy.

Rajan Aiyer, Vice President and Managing Director, Trimble, South Asia Region: “Trimble welcomes the 2024 budget with its visionary focus on building a New India. The boost in capital expenditure, reaching Rs 10 lakh crore is a noteworthy increase from the previous fiscal’s Rs 7.3 lakh crore. This commitment to infrastructure development aligns seamlessly with Trimble’s mission to revolutionize the construction and related industries through cutting-edge technology for speedy, sustainable, and high-quality development. As functional airports are set to be doubled to 149, Trimble is excited about contributing innovative solutions to enhance the aviation infrastructure. Additionally, Trimble continues to empower progress through advanced solutions fostering efficiency and resilience hand in hand with the strategic infrastructure initiatives outlined in the 2024 budget. This will indeed be the beginning of Amrit Kaal for national infrastructure development and march towards a $10T economy by 2030.”

Arun Misra, Chairman of the International Zinc Association: “We commend the Interim Budget for its focus on unlocking India’s growth potential and building a sustainable future. The 2024 interim budget unfolds a visionary roadmap for ‘Viksit Bharat,’ with INR 11,11,111 crore, infrastructure allocation, constituting 3.4 percent of the GDP, is a game-changer for sectors such as metals, logistics, and green energy. Initiatives like railway corridors, metro expansion, Vande Bharat trains, and new airports will bolster efficiency and create jobs. Modernization of airports, ports, and greenfield development further galvanize our infrastructure backbone, thus aiding employment for the youth and GDP growth simultaneously. The emphasis on rooftop solar aligns with the ‘Green Growth’ vision, propelling India towards net zero. Green energy projects, offshore wind, and the EV ecosystem expansion mark significant steps towards sustainability. This will stimulate demand for critical minerals. We are optimistic about the transformative impact of these initiatives, boosting demand for galvanized steel among other metals and minerals across infrastructure and green projects.”

Anil Banchhor, MD & CEO, RDC Concrete: “I applaud the forthcoming budget’s 11.1 percent increase in capex while keeping deficit in check , underscoring the government’s unwavering commitment to significant capital expenditure. With spending now at 3.4 percent of GDP, aligning seamlessly with our objectives, we are excited about the emphasis on infrastructure development, boosting demand for cement & concrete. This strategic move positions RDC to supply crucial building materials for the nation’s ambitious projects, fostering economic growth and directly benefiting our company.

The fiscal deficit reduction below 4.5 percent by 2025-26, as outlined in the Revised Estimate, is a commendable move. Government initiatives for iconic tourist centers, Railways corridors, port connectivity, and tourism infrastructure, including spiritual tourism, align perfectly with the growing enthusiasm for domestic tourism, creating opportunities for our industry.
Additionally, the government’s commitment to supporting the expansion of Metro Rail systems in large cities with a focus on transit-oriented development is a noteworthy step. This not only addresses the evolving needs of urbanization but also contributes to sustainable and efficient urban transformation. We appreciate the government’s forward-looking approach in expanding the e-vehicle ecosystem, supporting manufacturing and charging infrastructure. Particularly in the manufacturing industry, this sets the stage for a sustainable and innovative future, positively impacting job creation and the overall economy. These budgetary measures will undoubtedly contribute to our growth and the nation’s progress”

Neeraj Akhoury, President, Cement Manufacturers’ Association (CMA), and Managing Director, Shree Cement Limited: “The Cement Manufacturers’ Association (CMA) applauds the Government of India led by the Hon’ble Prime Minister, Shri Narendra Modi ji, for lending stability with growth to the Country for a Viksit Bharat.

We commend the Hon’ble Finance Minister Nirmala Sitharaman for the Interim Budget 2024-25 that focusses on social and economic inclusivity towards balancing the aspirations of the people with the requirements for India’s sustainable growth.

This Budget retains its intent to continue the rapid growth momentum keeping a sharp focus on medium and long-term vision. The strong thrust on research and innovation with infrastructure development is a move in the right direction. The sustained emphasis on good governance will also help in further Ease of doing business and strengthen the foundations for an Atmanirbhar Bharat.

The Cement Manufacturers’ Association welcomes the announcement for Cement corridors under the Railways that would help improve logistics efficiencies and boost multimodal connectivity. We reiterate our commitment to being partners in progress in the Nation’s evolving growth story.”

Parth Jindal, Vice President, Cement Manufacturers’ Association (CMA), and Managing Director, JSW Cement Limited: “At the core of the announced Budget are speed, innovation and scale, which are indeed driving India’s economic growth engine. The Cement Manufacturers’ Association (CMA) resonates with the Hon’ble Prime Minister Shri Narendra Modiji’s vision and the Government’s intent to strengthen and boost India’s progress by creating sustainable business value chains that lend solidity and robustness to India’s socio-economic fabric.

The Interim Budget 2024-25 presented by the Hon’ble Finance Minister augurs well for Bharat, one of the fastest growing economies of the world. There is a continued emphasis on inclusive growth embracing health, infrastructure development, rural upliftment, enterprise, research and innovation that stand to consolidate Government’s efforts for making India a formidable player in the global economic order. The Cement sector applauds the Budget. CMA welcomes the announcement by the Hon’ble Minister to build railways corridors – for Cement, Mineral and Energy sectors – that would boost the core sectors. The allocation to key sectors such as housing are steps in the right direction as these would both foster growth with employment. The Cement sector applauds the Hon’ble Finance Minister for providing a clear direction for the Country’s future growth.”

Arun Shukla, President and Director, JK Lakshmi Cement: “JK Lakshmi Cement applauds the Honourable Finance Minister, Shree 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 INR 11.11 lakh crores 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 programs, 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, JK Lakshmi Cement remains steadfast in its commitment to supporting the Government’s vision of a Vikisit Bharat by 2047 and contributing to the nation’s journey towards economic excellence while creating opportunities for all.”

Sourabh Bansal, Co-founder and Managing Director, Magicrete: “With Finance Minister Sitharaman’s announcement that an additional 20 million houses will be taken up in the next five years and a scheme for housing middle class, there is a positive outlook for the construction industry. It is notable that the government puts emphasis on long-term economic growth and development. The withdrawal of standing direct tax demands and maintenance of tax rates reduce the burden on many construction business owners. The fact that interest-free loans are to continue and the commitment to bring down the Fiscal Deficit implies an exercise in good fiscal policies. The focus on affordable housing, rooftop solarization, and green energy is in sync with Magicrete’s emphasis on environment-friendly construction technologies. We anticipate a proactive role in fulfilling the mission of Viksit Bharat towards nation-building.”

Sanjeev Bhandari, Founder and CEO, AirBrick: “We appreciate the government’s commitment to improving taxpayer services, as highlighted by the Finance Minister’s announcement. The proposal to withdraw outstanding direct tax demands up to Rs. 25,000 for years up to 2009-10 and Rs. 10,000 for the period from 2010 to 2015 is a welcome relief for 1 crore taxpayers. This step aligns with the government’s efforts to ease the burden on taxpayers and foster a more supportive financial environment. Furthermore, the decision to maintain the current tax rates for both direct and indirect taxes, including import duties, provides stability and predictability for businesses. The extension of tax exemptions for startups and IFSC units until March 31, 2025, is a strategic move to encourage continued growth and innovation in these sectors. The announcement of interest-free loans with an outlay of Rs. 1.3 lakh crore for the next year is a noteworthy initiative. This scheme aims to provide financial support and stimulate economic activities. The government’s focus on fiscal discipline, with an estimated Fiscal Deficit of 5.1 percent of GDP in 2024-25, reflects a responsible approach to economic management. In the housing and construction sector, the announcement of a scheme to assist the middle class in buying or building houses is a significant step towards addressing housing challenges. Additionally, the focus on green energy, e-vehicles, and bio-manufacturing reflects a forward-looking approach.”

Vikas Kumar Mittal, Managing Director, Nova Formworks: “We commend the government for its determination to ensure economic growth and the steered path the country has been placed on. The proposed intention to streamline tax processes and preserve ongoing stability in tax rates is a welcome move toward the manufacturing sector. Prolongation of tax exemption for startups and IFSC units until March 31, 2025, will ensure continuity and promote innovativeness. This focus on green manufacturing, which is geared toward e-vehicle and bio-manufacturing sectors, coincides with our sustainability goals. Nova Formworks thanks the efforts of the government’s initiative to develop improved performance logistics efficiency institutes through a corridor of railway programs. We hope to be a part of the creation of Viksit Bharat and to engage constructively with the Government’s vision for India as an advanced Nation.”

Geeta Arya, Founder and Principal Architect, Geeta and Vaibhav Architects: “We applaud Finance Minister Ms. Nirmala Sitharaman for proposing a budget that aims to showcase a vision for ‘Viksit Bharat’ or developed India. The track record of governance, development, and performance by the government is a notable element in every scheme and initiative mentioned in the budget. The concentration on how to empower the youth in the National Education Policy and Skill India Mission combined with a focus on inclusive development is praiseworthy. It is a great measure by the Finance Minister that proposes the construction of housing scheme for the middle class to help deserving sections of this class who live in rented houses or slums to buy or build their homes and it should be applauded as an important step towards resolving the issues from housing. As professional architects, we understand the trend of such schemes towards the nation’s overall progress and people’s welfare”

Subahoo Chordia, President & Head – Real Assets, Edelweiss Alternatives: “The budget is a further demonstration of the sustained government support to the infrastructure sector, evident in an increase of over 11 percent in allocation. Initiatives such as the development of multi-modal connectivity, a renewed emphasis on advancing solar and wind energy technologies, including offshore wind, and the improvement of railway infrastructure are poised to fuel economic growth. The backing of sustainable technologies, including electric vehicles and charging infrastructure, bodes well for a cleaner future. In all, the budget is expected to lead to a sustained growth of the economy.”

Sushil Virmani, Managing Director, Best Power Equipments (BPE): 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 for propelling our nation towards the coveted 7 trillion economy by 2030.

Ashwin Sheth, Chairman, Ashwin Sheth Group: “We acknowledge the strategic direction outlined in the 2024 interim budget, particularly its focus on reinforcing the affordable housing sector through the 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 percent 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 empowerment. The progress in the implementation of PM Awas Yojana (Grameen), approaching the target of three crore houses, with a commitment to taking up construction of two crore 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 lakh crores 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.”

Rishabh Siroya, Founder, Siroya Corp and President, NAREDCO, NEXTGEN Maharashtra: “We appreciate the Finance Minister’s announcement of an additional two crore houses under the Pradhan Mantri Awaas Yojana – Gramin. This not only addresses the crucial need for affordable rural housing in India but also promotes socio-economic empowerment. The government’s dedication to narrowing the housing gap is commendable, reflecting a committed effort towards inclusive development. Additionally, the Finance Minister has increased the outlay for infrastructure to Rs 11.11 lakh crores in FY25. This added funding is expected to contribute to the overall growth of the real estate sector in the country”.

Pavan Kumar, Founder & CEO, White Lotus Group:  We appreciate the government’s continuing efforts in infrastructure development as outlined in the 2024 budget. As we have stressed in the past, strategic urban planning under the satellite towns development has to be adopted and implemented to alleviate pressure in tier 1 cities like Mumbai, Delhi and Bangalore.

The 40 percent 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 the connectivity between urban centers and surrounding satellite towns giving a boost to housing, and further increasing the contribution to GDP from the current 7 percent to 10 percent 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 urbanization. We look forward to even greater emphasis on this in future budgets.

Piyush Bothra, Co-Founder and CFO, Square Yards: 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, catalyzing 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 unauthorized 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 fulfills their dreams but also contributes to fostering a stronger and more resilient community.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India): ” Finance Minister underscored the government’s recognition of the significance of homeownership. In a notable announcement, the FM stated 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 revitalize the Mid housing & Affordable housing sector. Moreover, with the economic scenario improving and the average real income of individuals witnessing a 50 percent increase, optimistic expectations abound for the real estate sector to thrive across all segments. An additional favorable development is the government’s unwavering focus on infrastructure development, reflected in the 11.1 percent 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.”

Badal Yagnik, Chief Executive Officer, Colliers India: The Interim budget was laid on the premises of infrastructure, housing, green energy initiatives and innovation, setting up the foundation for a 6-7 percent 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 percent YoY increase in infrastructure outlay to over INR 11 lakh crore 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 upbeat confidence towards all real estate segments.

Shishir Baijal, Chairman and Managing Director, Knight Frank India: “The union budget presented today by the honourable Finance Minister has further strengthened the government’s commitment towards long- term social and infrastructure development. Though it is an interim budget due to the impending elections, today’s announcements by the Union Finance Minister are significant in many aspects. The 11.1 percent increase in infrastructure outlay which is 3.4 percent of GDP will further enhance the railway, roads and logistics infrastructure of the country. The three new economic railway corridors identified under the PM Gati Shakti program are massive projects with the potential to grow economic hubs and boost development of the tier-2 and tier-3 cities along their alignment. The intention to complete 2 cr housing units in the next five years will aid the ‘Housing for All’ mission of the government. Additionally, the proposed boost to housing for the middle-class living in sub-par accommodation is also a welcome inclusion. We look forward to the details of this as we expect this to have great long-term ramifications.  Further, the enhanced focus on domestic tourism development will provide a fillip to the hospitality industry.”

Apurve Goel, Director, Kundan Green Energy: “We see the Union Budget 2024 highlights as progressive from the renewable energy and climate change mitigation perspective. My submission for the Government to consider, is the viability gap funding and overall availability of green finance for renewable energy , especially hydropower. Building a hydel plant typically costs two to three times more capital than solar or wind. Similarly, the gestation period is longer. This means that hydel plants are capital intensive and require a more robust and longer haul commitment. While cost inflations are a natural outcome, developers also need to mitigate these by factoring in anticipated increases into project costs and minimizing over-runs through optimal use of resources coupled with speed and tight timelines. A friendlier and more accessible fiscal ecosystem, including easier insurance, will help energize this critical renewable energy generation category.”

Dinesh Arjun, Co-founder and CEO, Raptee Energy: “Various initiatives announced by the FM today clearly demonstrate the government’s intention to further accelerate EV adoption and also generate significant employment opportunities for the youth. It is encouraging to see the focus on research and innovation to further grow the EV ecosystem. We believe that as the govt rolls out details of the scheme in the coming days for growing the EV public charging infrastructure, the availability of public chargers across the country will significantly grow and EV companies like ours will find higher market acceptance from its consumers and also attract investor interest. This will also break the ‘range anxiety’ , the biggest barrier for EV adoption in our country. The government’s support in providing financial assistance and support to EV manufacturing will encourage entrepreneurs to do deeper innovation in the battery management segment and other technologies. Growth in EV charging infra will also generate employment opportunities for the youth as companies will be on a look out for people with technical know-how of running and maintaining charging infra. EV companies will also enjoy a deeper vendor ecosystem providing battery and other components for building make in India EV vehicles”.

Swayam Agrawal, Founder and CEO of Aarika Innovations: As the founder of a deep tech startup contributing to infrastructure development, I applaud the government’s commitment to fostering growth across digital, social, and physical domains. Embracing cutting-edge technology is key to building resilient infrastructure quickly. The budget’s emphasis on innovation aligns with our mission to leverage advanced gadgets and tech solutions for sustainable progress. It’s a testament to the recognition that technology is the backbone of modern infrastructure, ensuring efficiency and connectivity. We look forward to collaborating with the government to drive the nation’s technological evolution and contribute meaningfully to its ambitious infrastructure agenda.

Ashwin Sheth, CMD, Ashwin Sheth Group: “We acknowledge the strategic direction outlined in the 2024 interim budget, particularly its focus on reinforcing the affordable housing sector through the 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 percent 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. The progress in the implementation of PM Awas Yojana (Grameen), approaching the target of three crore houses, with a commitment to taking up construction of two crore 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 lakh crores 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.”

Jasbir Singh, Chairman and CEO, of Amber Enterprises India Limited:  “The interim budget with a focus on three major railway economic corridor programs, along with a strong infrastructure push is a positive move. Along with this, the upgradation of 40 thousand normal railway bogies to the standard of Vande Bharat as well as the expansion of metro networks and NaMo Bharat trains for urban India, will further bolster India’s manufacturing capability and is in sync with the Atma Nirbhar Bharat vision of Prime Minister Modi. The strong capex boost will augment the domestic manufacturing capability and help enhance the level of indigenisation by homegrown players. Amber with its diversified play across EMS, mobility and HVAC is uniquely poised to leverage the emerging opportunities in the manufacturing ecosystem.”

Yashank Wason, Managing Director, Royal Green Realty: “As expected, there was no direct benefit announced to the real estate developers or measures that can increase the buyer activity. However, the Budget reflects the government’s focus on infrastructure which will ensure expansion of real estate scope in newer areas. The positivity shown by the finance minister in economic growth and the acceptance that salaries have increased by 50 percent in the last ten years instils confidence in the sector that caters to the most basic need of people. We must also wait for the details of the Housing for Middle Class that the FM has announced. For office real estate, the announcement of extending tax benefits to startups may increase activity.”

Aparna Reddy, Executive Director, Aparna Enterprises Ltd : “This budget exemplifies the government’s commitment to holistic and inclusive development. With a focus on developing infrastructure across segments and in order to become a Viksit Bharat by 2047, the various measures announced by the Finance Minister will lay a strong foundation. A momentous step towards inclusive housing through “housing for all” has been extended to the middle-class by providing support to buy or build their own houses. This will spur growth of the real estate industry and the demand for construction materials, and is a commendable continuous effort by the government to keep up the momentum in the housing segment. With the government’s push for infrastructure development for tourism, the demand for state-of-the-art resorts, buildings, high-rises, tourist spots, and entertainment zones, will also boost the demand of building materials of global standards. Similarly, construction of more airports, railway infrastructure, and educational institutes will drive unprecedented development, rapid urbanisation, and realise the dream of a developed India at 2047.

Allocating 3.4 percent of the GDP to infrastructure development reflects the government’s intent to reinforce India through its next-gen reforms. This tremendous monetary injection is likely to further raise the rate of constructing resilient and thriving infrastructure, paving the way for a more advanced and sustainable future.”

Mr. Kishore Lodha, Chief Financial Officer, U GRO Capital: Overall, this Union budget has been an excellent budget – it consists of something for everyone. Notably, the Government’s commitment to green growth and energy infrastructure is commendable. The announcement of one crore solar units by the Prime Minister marks a significant stride, alleviating financial burdens on households and addressing environmental concerns.

The overall focus on GYAN initiative, which is Garib (Poor), Yuva (Youth), Annadata (Farmer) and Nari (Woman), will benefit the most economically disadvantaged individuals. The announcement of an 11 per cent increase in capex budget sounds promising, and the best part is that the government is not leaving fiscal prudence in any way. The next year’s deficit target has been kept as 5.1 per cent, which is a pleasant surprise. Borrowing will be lesser compared to this year which is good news for the financial markets.

Extending Ayushman Bharat cover to Anganwadi and Asha workers, alongside consolidating maternal and child healthcare schemes, aims to address rural health challenges and fosters opportunities for Healthcare MSMEs who are crucial contributors to the healthcare sector’s revenue growth. To achieve the vision of a $7 trillion economy, accelerating digitalization is paramount in today’s evolving digital global fabric.

Chirag Mehta, Founder, Arbour Investments: “This year’s interim Budget presented by Finance Minister Nirmala Sitharaman for the year 2023-24 , has been a welcoming move for the Indian Real Estate. The budget presented has raised hopes for the Indian Real estate sector. The capital expenditure outlay on theInfrastructure development has been a welcoming move. Whereas easing the legal provision isa need of the hour. The possibilities of High end Income group investing in the sector will undoubtedly see the shift in the completion of the successful residential & commercial project completion.”

Satyakam Arya, – Managing Director & CEO, Daimler India Commercial Vehicles: “The framework of the interim Union Budget proposed by the Honourable Finance Minister, Government of India, is quite optimistic. The most prominent takeaway for me was the capital expenditure outlay of INR 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 am keenly looking 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 the 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 realizing the dream of Viksit Bharat in 2047.”

Nishant Sinsinwar, Founder of Homiie Studio & Projects Makers: “We appreciate this Interim Budget that reflects a positive trajectory for the real estate and construction sectors, as well as infrastructure development. The government’s commitment to sustained growth and economic development, evident in the meticulous handling of the economy since 2014, is commendable. The emphasis on improving taxpayer services, withdrawing outstanding direct tax demands, and maintaining stable tax rates for direct and indirect taxes is a step in the right direction. The extension of tax exemptions for startups and IFSC units demonstrates a supportive approach to fostering entrepreneurship.

The focus on the GST system, reduction in compliance burden, and the positive impact on trade and industry is acknowledged. We appreciate the government’s efforts to streamline tax provisions, making filing returns simpler and faster. The budget estimates for 2024-25, with a continued emphasis on interest-free loans and fiscal discipline, instill confidence in the economic roadmap. The proposed interest-free loan for reforms by states and the significant FDI inflow showcase a forward-looking vision.”

Anil G Verma, Executive Director and CEO, Godrej & Boyce: 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 percent 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 prioritize domestic spends and guard against external shocks.

The increased capital expenditure of Rs 11.11L Cr, constituting 3.4 percent 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 solarization, 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.

Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd: “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 at Mahindra Logistics, eagerly anticipates actively participating in and benefiting from these initiatives, ushering in positive transformations in the logistics and transportation sector.”

Shalabh Chaturvedi, Managing Director, CASE Construction Equipment, India & SAARC: “With the decision to increase Capex by ~11 percent to ~₹11 lakh crore, 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.”

Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd: “Nuvoco welcomes the initiatives in the latest Interim Budget, which acknowledges the Government’s commitment to growing the economy in challenging geopolitical conditions. As part of the PM Gati Shakti program, to foster strong multimodal connectivity, three proposed major economic railway corridors focusing on energy, minerals, and cement will improve logistics efficiency and reduce costs. This will benefit both the industry and the economy.

In addition, the focus on the Individual House Builders (IHB) Segment, particularly the new housing scheme for the middle class, aligns perfectly with the nation’s socio-economic goals. The initiative to construct two crore houses under the PM Awas Yojana and the progress of the Pradhan Mantri Awas Yojana (Grameen), with an additional two crore homes planned to be built over the next five years, is particularly noteworthy. The government’s efforts to improve port connectivity, decongest high-traffic rail corridors, and transform metro rail are positive developments for the ready-mix concrete industry. These measures should further improve the standard of living for millions of people and offer numerous opportunities for economic and community development”.

Aparna Reddy, Executive Director, Aparna Enterprises Ltd: “This budget exemplifies the government’s commitment to holistic and inclusive development. With a focus on developing infrastructure across segments and in order to become a Viksit Bharat by 2047, the various measures announced by the Finance Minister will lay a strong foundation. A momentous step towards inclusive housing through “housing for all” has been extended to the middle-class by providing support to buy or build their own houses. This will spur growth of the real estate industry and the demand for construction materials, and is a commendable continuous effort by the government to keep up the momentum in the housing segment. With the government’s push for infrastructure development for tourism, the demand for state-of-the-art resorts, buildings, high-rises, tourist spots, and entertainment zones, will also boost the demand of building materials of global standards. Similarly, construction of more airports, railway infrastructure, and educational institutes will drive unprecedented development, rapid urbanisation, and realise the dream of a developed India at 2047.

Allocating 3.4 percent of the GDP to infrastructure development reflects the government’s intent to reinforce India through its next-gen reforms. This tremendous monetary injection is likely to further raise the rate of constructing resilient and thriving infrastructure, paving the way for a more advanced and sustainable future.”

Anirudh Bhuwalka, CEO, Blue Energy Motors: “The union budget presented today by the honourable Finance Minister 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.

The government’s 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, the Union Budget demonstrates a well-rounded vision that promises to propel India towards a more sustainable and economically robust future.”