To propel India’s growth trajectory, the Union Budget for 2024, presented by Finance Minister Nirmala Sitharaman, has unfolded a vision that resonates strongly with the construction and infrastructure industry. With a robust focus on bolstering economic fundamentals and sustaining momentum, the budget has been met with positive sentiments from key players in the sector.

Infrastructure allocations and economic growth

One of the key highlights of the budget is the significant increase in capital expenditure, reaching Rs 11.11 lakh crore—an 11.1 percent rise from the previous fiscal year. Industry leaders applaud this move as a pivotal step towards fostering growth and development. This surge in infrastructure allocations is expected to have a cascading effect on various sectors, including real estate, logistics, metals, and green energy.

Visionary roadmap for ‘Viksit Bharat’

The budget unfolds a visionary roadmap for ‘Viksit Bharat’ (Developed India) with a notable allocation of INR 11,11,111 crore for infrastructure development, constituting 3.4 percent of the GDP. This game-changing move is expected to galvanise the construction and infrastructure industry, significantly boosting sectors such as metals, logistics, and green energy.

Boost to urbanisation in tier 2 and tier 3 cities

Industry experts acknowledge the government’s commitment to urbanisation, emphasising that the growth is not limited to top cities but extends to Tier 2 and Tier 3 cities across the country. With rapid urbanisation, there is a call for safer and fire-free infrastructure, reflecting the industry’s foresight in addressing critical safety concerns in upcoming projects.

Innovation and technology integration

Prominent players in the construction technology sector welcomed the budget’s visionary focus on building a New India. The commitment to infrastructure development aligns seamlessly with the mission to revolutionise construction and related industries through cutting-edge technology. This includes innovative solutions to enhance aviation infrastructure, contributing to the growth and efficiency of the sector.

Concrete contributions to infrastructure development

Concrete industry leaders express their applause for the 11.1 percent increase in capital expenditure. The focus on infrastructure development is expected to boost demand for cement and concrete, positioning companies to supply crucial building materials for the nation’s ambitious projects. Additionally, support for expanding Metro Rail systems and the commitment to the e-vehicle ecosystem are noteworthy steps contributing to sustainable and efficient urban transformation.

Green growth and sustainability

The budget has drawn appreciation from environmental advocates and industry leaders for its emphasis on green growth. Initiatives like rooftop solar, offshore wind projects, and the expansion of the electric vehicle ecosystem mark significant strides towards sustainability. The allocation of funds for developing green energy projects and the push towards net zero aligns with the global push for a greener future.

Real estate’s role in inclusive growth

The Cement Manufacturers’ Association applauds the budget for focusing on social and economic inclusivity. The sustained emphasis on good governance is expected to strengthen the foundations for an Atmanirbhar Bharat (Self-reliant India). The announcement of Cement corridors under the Railways is seen as a positive move that improves logistics efficiencies and boosts multimodal connectivity.

Affordable housing and inclusive real estate development

The budget outlines a strategic direction for reinforcing the affordable housing sector through increased allocations for schemes like Pradhan Mantri Awas Yojana (PMAY). The commitment to constructing additional housing units, along with specific schemes targeting the middle class, is poised to impact the real estate landscape positively. This focus on inclusive development is further reinforced by the allocation of PMAY houses to women in rural areas, providing secure living spaces and advancing women’s empowerment.

Digitalisation and future growth

The budget emphasises the importance of technology, focusing on fostering an environment for local and global investments in semiconductor technology, AI, and digital platforms. The commitment to integrate cutting-edge technologies into educational curricula ensures a skilled workforce, aligning with the nation’s aspirations to achieve a $7 trillion economy by 2030.

The Union Budget 2024 is a comprehensive roadmap for the construction and infrastructure industry. With a keen eye on sustainability, innovation, and inclusivity, the government’s initiatives are poised to drive growth, create jobs, and build a resilient and self-reliant India. The positive reactions from industry leaders indicate a shared enthusiasm for the transformative journey ahead.