Post-Budget Comment from Infrastructure and Real Estate Sector
Infrastructure Sector
Pradeep Misra, CMD, Rudrabhishek Enterprises Limited
While keeping focus on growth, the Hon’ble FM has ensured that the budget is also inclusive in nature. It takes care of the specific sectors such as hospitality and education that have been deeply impacted by the pandemic. The special focus on PM Gati Shakti scheme will have a multiplier effect on the economy. The government’s target of expanding the road network by 25000 kms through an investment of INR 20000 crore in 2022-23 will strengthen the infrastructure at the grassroots levels. The announcement of Parvatmala scheme should fuel the development of eco-friendly tourism in the hilly, remote and ecologically fragile areas. The investment of INR 60000 crore for tap water connections scheme will be the boon for millions of Indians, especially among the economically weaker section. Additionally, the 400 Vande-Bharat trains will boost the land transport. The crucial thing will be rolling out of projects on quicker pace and ensuring that the public private partnership programs are designed in a way that supports the companies involved in infrastructure sector, specifically the MSMEs.
It is good to see the continued emphasis on PMAY scheme as Rs. 48000 crores have been allocated with objective of completing 80 lakh houses for identified beneficiaries. The formation of high-level committee for urban capacity building and planning implementation is very welcome move. The increasing urbanization needs a very structured approach for cities’ sustainable growth over long time-frame.
The fiscal deficit pegged at 6.4% of GDP needs to be kept on watch. The government’s plan of disinvestment could have been elaborated further for clarity of industry. Also the special push much needed by the Real Estate industry as a whole is not addressed in the budget. We can expect follow-up announcements for greater push to the sector.
Real Estate Sector
Harpreet Singh Hora, Group Director, Realistic Realtors
The government’s allotment of 48,000 crore to build around 80 lakh affordable homes is a positive initiative for real estate. The expansion of highways by 25,000 kms will catalyze the development of new realty clusters and allied industries. The boost to the infrastructure at the grassroots levels will fuel the demand for the sector in Tier 2 & 3 cities. Furthermore, the establishment of the high-level committee for Urban planning will greatly enhance the ease of doing business and result in raising the standards of living in Indian cities. The budget will sustain the momentum gained in past few months for real estate and gradually increase it during the FY 2022-23.
