The Union Budget has been a disappointment for the wind energy sector at a time when the wind energy was generating a sizable share of 5%t of electricity at the all India level.
This union budget has focused on affordable housing by allowing ECB for low cost affordable housing projects and setting up credit guarantee trust that will give better capital availability for developers of low-cost housing.
A status quo budget. We were looking for more concrete initiatives that could quickly propel India’s growth and more specifically, increase manufacturing from 16 to 25% of GDP.
Indian real estate sector does not have much to cheer about. The increase in the service tax rate from 10% to 12% will increase the cost of production for developers, who are already reeling under high input costs.
Whilst there is not much incentive provided to the general housing buyers other than a token increase in tax exemptions, the positive aspect of the budget it that it has increased support to affordable housing sector in the form of enhanced budgetary support and institutional support by creation a credit guarantee trust fund and allowance of ECB in affordable housing.
Overall, a tepid budget with no big-bang measures that ensure the promised high growth trajectory that India has been waiting for patiently for the past couple of years.
Overall this budget does not have much to look forward to. With reference to the real estate sector, there is an absence of any intent to address the issues concerning the sector.
