NAREDCO Vice Chairperson Dr. Niranjan Hiranandani has welcomed Union Finance Minister Nirmala Sitharaman’s Budget 2023–24, presented by her to the parliament on Wednesday (1).
Calling it a fiscally ‘balanced’ budget, Hiranandani said that India has “prudently maneuvered global and economical storms, aptly addressing the economic growth by augmenting the capital expenditure outlays in infrastructure up to Rs 10 lac crores accounting to nearly 3.3 per cent of GDP.
“This will have a multiplier effect on real estate asset classes like the residential, commercial, Industrial and Logistics sector. The last mile connectivity will reduce the logistics cost substantially, enhancing India’s global competitiveness and investment index. Infrastructure development is pivotal for employment generation and opens up hinterlands across geographies for all sorts of real estate developments.
“Setting up of Urban Infrastructure Development Fund managed by NHB will ensure governance, speed in execution and timely delivery under PPP ties. Incremental PMAY allocation upto Rs 79,000crores will give impetus to affordable housing and benefit a wide segment of homebuyers. Rebates in personal tax will permit additional disposable income in the hands of the discerning homebuyers to be invested back in a safe asset ‘home’.
“The capital gain tax benefit on the sale of property above the value of Rs 10crores is sought to be withdrawn. families are liable to pay capital gain tax which will disincentivize families to buy multiple properties as a security provision for their children. Emphasis on skilling to foster research and knowledge-based economy will garner a job ready workforce for the highly labor-intensive real estate sector. The measures for digital adoption and green economy will augur well for sustainable development and help achieve a low carbon economy.”
The Union Finance Minister has expressed a clear commitment to capital expenditure, which will have a positive impact on the Indian industry and create employment opportunities. The Centre has granted 50-year interest-free loans to state governments for an additional year with a total outlay of ₹1.3 lakh crore, encouraging infrastructure investment across the states and fostering local industries.
The government has also taken measures to ensure that all sections of the salaried class benefit from the Union Budget, with reduced tax slabs from the lowest to the highest brackets. This will be advantageous for all income taxpayers, with a considerable growth in the tax base over the past five to six years.
The finance minister has also taken steps to benefit the MSME sector by launching a new Rs 9,000 crore credit guarantee scheme. This revamp will offer an additional collateral-free loan of Rs 2 lakh crore to MSMEs while reducing the cost of credit by 1 per cent, as stated in her budget speech.
This budget also focuses on inclusive development, by establishing an Agriculture Accelerator Fund to nurture agri-startups and promoting digital public infrastructure. This will provide farmer-centric solutions for crop planning and storage. Substantial agricultural credit targets up to ₹ 20 lakh crore by 2024 will place a priority on animal husbandry, dairy, and fisheries. This ambitious plan has the potential to significantly strengthen the economy.