The authorisation of an 11.1 percent rise in capital spending to ₹11.11 lakh crore, equivalent to 3.4 percent of GDP for the fiscal year 2024–25, is a welcome step that matches market expectations, promoting an atmosphere conducive to economic growth.
The Interim Budget 2024, delivered by Finance Minister Nirmala Sitharaman, exemplifies a conservative and assured fiscal plan. Similarly, the government’s dedication to infrastructure development is demonstrated by its emphasis on supporting worthy middle-class members, particularly those living in slums or leased housing. This initiative is designed to facilitate purchasing or constructing their own homes. The ambitious objective of building two crore residences in rural regions over the next five years under the PM Awaas Yojana—Gramin is a notable endeavour. Furthermore, the near completion of the 3 crore home objective under the PM Awaas Yojana-Gramin and the start of a rooftop solar project to give free power to 1 crore families are excellent initiatives. Likewise, allocating 70 percent of these houses to women emphasises the government’s commitment to gender-inclusive development.
The budget’s emphasis on green initiatives, bio-manufacturing, and blue economy activities is expected to influence real estate markets substantially. Promoting sustainable alternatives such as biodegradable polymers and bio-agri-inputs creates opportunities for environmentally aware real estate construction.
Furthermore, the extensive expansion of tourist centres and the implementation of a facility grading framework presents exciting opportunities for the hotel industry. This is projected to help real estate in important tourist-friendly areas. The Interim Budget 2024 represents a forward-thinking approach, tackling critical areas while driving the country towards a brighter, more sustainable future. The Finance Minister declared that the forthcoming July Budget will contain the comprehensive Vikasit Bharat agenda. She emphasised the needs and aspirations of the Garib, Mahilayen, Yuva, and Annadata, highlighting the government’s primary priorities, and we applaud her and the government for the same.
The Interim Budget for 2024–25 presented by Union Finance Minister Nirmala Sitharaman reflects a comprehensive vision to foster inclusive growth and sustainable development in India. The focus on transforming India into ‘Viksit Bharat’ by 2047 underscores the government’s long-term commitment to national development. This vision, encapsulated in the slogan “sabka saath, sabka vikas” (together with all, development for all), emphasises the inclusive nature of the government’s approach.
The emphasis on GDP, redefined as governance, development, and performance, is a strategic move, particularly in the upcoming general election. This redefinition indicates a shift towards a holistic view of economic growth that intertwines effective governance and sustainable development with performance metrics. It’s a narrative that might resonate well with the electorate, considering the administration’s bid for a third consecutive term.
The commitment to the PM Awas Yojana Grameen, which aims to construct 2 crore additional houses, continues the government’s focus on rural development. Achieving the milestone of 3 crore houses under the rural housing scheme and setting an ambitious target for the next 5 years reflects a significant investment in infrastructure development that addresses a basic need – housing.
The announcement of a new housing scheme for the middle class is particularly noteworthy. This initiative addresses the housing needs of those living in substandard conditions like slums and chawls or those burdened by rent. By facilitating home ownership, the government is looking to improve living standards and stimulate the real estate sector and associated industries.
Overall, the budget is strategically crafted with an eye on immediate and long-term goals. It caters to key segments of the population – the rural poor, the middle class, and those looking towards the government for improved governance and development. The success of these initiatives will depend on effective implementation and the government’s ability to meet these ambitious targets.
The Joint Managing Director, Vikas Garg, expressed enthusiasm about the strategic focus on modern infrastructure, geographic inclusivity, and comprehensive economic growth. The Housing for Middle-Class scheme and the ambitious plan of constructing 2 crore homes under PM Awas Yojana-Gramin were hailed as laudable initiatives, addressing the unmet demands of the real estate industry.
Dushyant Singh, Director of Orion One 32, echoed this sentiment, emphasising the alignment with the vision of Aatmanirbhar Bharat, Geographical Inclusivity, and social justice. The Interim Budget 2024 introduced key reforms and promised Housing for All, equitable resource distribution, and women’s empowerment in property ownership. Singh predicted a surge in demand for office spaces and mixed-use outlets due to the synergetic ecosystem created by the budget.
The Director of Orris Infrastructure, Amit Gupta, highlighted the government’s commitment to Housing for All through the Housing for Middle-Class scheme and the ambitious target of constructing 2 crore homes under PM Awas Yojana-Gramin. The scheme was seen as a game-changer, empowering the middle class to own homes and contributing to economic upliftment. The Rooftop Solarisation scheme was also applauded for fostering a resource-efficient economy.
The Managing Director of Trehan Group, Saransh Trehan, emphasised the pro-people programs introduced in the budget, encouraging millions to invest in real estate assets, especially in Tier 2 and 3 hubs. The commitment to strengthening modern infrastructure and transport was expected to boost demand for commercial and retail projects.
The Executive Director of Splendor Group, Shiven Vikram Bhatia, referred to a CBRE report indicating a 48 percent increase in retail space leasing across major cities in 2023. The Interim Budget’s emphasis on modern infrastructure standards was predicted to accelerate demand and sales in newly developing corridors and realty zones.
Arvind Singh, Managing Director of Krasa Group, foresaw growth in metropolitan regions and Tier 2 and 3 realty zones. The demand for office and retail spaces was anticipated to rise significantly, driven by grassroots-level reforms.
The central theme of the Interim Budget 2024, according to Vasudev Garg, Director of Rajdarbar Realty, was Housing for All. The Housing for Middle-Class scheme aimed to assist middle-class and low-income groups realise their dream of home ownership. The commitment to build 2 crore new homes in rural areas under PM Awas Yojana-Gramin received widespread acclaim, especially for allocating 70 percent of houses to women.
Anshuman Magazine, Chairman & CEO of CBRE India, Southeast Asia, Middle East & Africa, praised the budget’s focus on infrastructure development and initiatives for women, youth, farmers, and weaker sections of society. Adding 2 crore houses under the PM Awas Yojana (Gramin) was expected to stimulate growth in rural areas, benefiting real estate and construction activities.
Trimble, a key player in construction technology, welcomed the visionary focus on building a New India. The substantial increase in capital expenditure for infrastructure development aligned seamlessly with Trimble’s mission. Rajan Aiyer, Vice President and Managing Director of Trimble, expressed excitement about contributing innovative solutions to enhance aviation infrastructure, supporting the ambitious goal of doubling functional airports to 149. Trimble saw the 2024 budget as the beginning of Amrit Kaal for national infrastructure development and a march towards a $10 trillion economy by 2030.
According to Akshat Seth, MD & CEO, HIL Ltd. “The budget’s spotlight on housing and triple rail corridors aligns with the government’s strategy for economic growth through infrastructure. As leaders in home and building materials, we’re well-positioned to capitalise. Our Pipes & Construction Chemicals business and innovative AAC blocks support the push for housing, contributing to India’s domestic manufacturing capacity and ensuring ongoing economic growth.”
Leaders from CNH India, SAARC, and CASE Construction Equipment applaud the Interim Budget. Narinder Mittal commends the focus on farmers, citing benefits like PM Kisan Samman Yojana continuation and biomass aggregation support. He sees it driving demand for modern farming solutions. Shalabh Chaturvedi praises the government’s sustained focus on infrastructure with increased Capex, emphasising the significance of railway and airport expansions. Both leaders view the budget as a well-rounded approach to bolster key sectors.
The Managing Director of Kamdhenu Limited, Satish Kumar Agarwal, comments on the budget, stating that the budget’s focus on housing, with plans to build 20 million houses for the underprivileged and a scheme for middle-class home ownership, is set to drive demand for construction materials, particularly with the solar rooftop project further boosting demand for structural steel products.
Euro Panel Products Limited wholeheartedly supports the new budget’s vision, praising the government’s commitment to modernise railways, transform 40,000 coaches for Vande Bharat Express, and expand major railway infrastructures, aligning with their mission for comprehensive development; the increased capex target of Rs. 11.1 lakh crore for FY25 reflects the government’s dedication to state-of-the-art infrastructures, and Eurobond remains committed to championing ambitious infrastructure development goals with innovation and cutting-edge technology, according to Rajesh Shah, Chairman & MD at EUROBOND.