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Dr Niranjan Hiranandani– Chairman – Hiranandani and NAREDCO states, "India Inc. welcomes the all-encompassing Union Budget 2024 enthusiastically, recognizing the government's keen focus on fiscal incentives and structural reforms that prioritize employment-centric sectors. The budget’s strategic emphasis on skilling through private sector internships, salary support, and CSR-funded training demonstrates a vital commitment to enhancing youth employability, positioning them as the primary growth engines of our economy.
The monumental allocation of Rs10 lakh crore under the PMAY Urban Scheme, aiming for 3 crore houses, alongside the focus on rental housing through dormitories in industrial parks via the PPP model, and the sanctioning of 12 new industrial parks, underscores a robust vision for urban development. With sustained infrastructure impetus, reflected in the Rs11.11 lakh crore Capex allocation, we anticipate a significant boost in affordable rental housing for industrial laborers.
Innovative initiatives such as the digitization of land records, GIS mapping, and urban housing for the middle class, combined with workforce skilling, are expected to have a profound multiplier effect on the burgeoning real estate sector, currently experiencing double-digit growth. Moreover, the budget’s focus on sustainable development through solar and renewable energy, water and solid waste management aligns perfectly with the goal of climate-resilient real estate development.
While the reduction in long-term capital gain tax to 12.5% without indexation benefits will be closely monitored for its practical impact. However, aligning the holding period for long-term capital gains with that of equity shares by reducing it to 24 months will significantly boost much-needed investment and enhance competitiveness within the sector. The emphasis on encouraging state governments to reduce stamp duty and other development premiums is a decisive step. This will not only bolster urban housing growth but also make affordable housing more accessible, optimize development costs, and invigorate the demand curve. The implementation of redevelopment and transit-oriented development schemes merits careful attention, as they are pivotal for driving urban growth, generating employment, attracting investments, and boosting economic growth.
In essence, the budget reflects a strategic economic stimulus, keeping India's macro growth trajectory robust amid global uncertainties. With its laser-focused priorities in skilling, tourism, MSME, education, urban development, and infrastructure, along with initiatives for women and youth development, this budget injects much-needed vitality into the economy. The alignment between the economic survey and the budget outlays, along with the aim to cap the fiscal deficit at 4.9%, will help maintain inflation control and encourage credit borrowings.
We rate this budget an 8 out of 10, recognizing its thoughtful direction and positive momentum, which are poised to keep India shining brightly on the global stage. The government’s measures are timely, and impactful, and set the course for sustained economic growth."
