Budget 2024: Stakeholders from real estate sector react to the budget announcements

Sandeep Runwal, President of NAREDCO Maharashtra, said that government’s focus on transforming the country into ‘Viksit Bharat’ by 2047 underscores the government’s long-term commitment to national development. “The commitment to the PM Awas Yojana Grameen, with the target of constructing 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 seems to be aimed at addressing 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 not only looking to improve living standards but also to stimulate the real estate sector and associated industries.”

“In a positive for the real estate sector, 2 crore more houses will be built under the PM Awas Yojana scheme in the next five years and new scheme for enabling middle class who are currently living in rented premise to build or buy their own houses will be implemented. This should also provide an impetus to the ancillary sectors such as cement, steel etc. The extension of the Sovereign and Pension Fund exemption till March 31, 2025 could lead to more investments in the warehousing and data centre segments,” explained Gaurav Karnik, Partner and Real Estate Leader, EY India

‘The budget’s plan to build two crore more houses in the next five years is a big step to help low and middle-income people in India find homes. With a new program to help middle-class people own homes, we’re seeing big changes in housing. These efforts show how important it is for everyone to have a home and how new ideas in building can make our cities better places to live,” said Shiwang Suraj, Director & Founder of InfraMantra.

“Reduction in compliance and relaxation of regulatory provisions is a welcome move from ease of doing business perspective and will aid the growth of the real estate sector. The unwavering focus on infrastructure upgrades and building connectivity across the country is noteworthy move for the industry as it will benefit real estate growth in not just the top cities but in tier 2 & 3 cities across the country,” said Ramani Sastri Chairman & MD, Sterling Developers Pvt. Ltd.

Reactions from Energy sector players

“The budget promises unprecedented growth for India in the coming five years, focusing on the growth pillars of green energy and infrastructure development. It has laid the foundation for a resilient and sustainable energy future. The rooftop solarisation program which aims to provide 300 units of free power every month to 1 crore houses along with an opportunity to sell surplus energy to DISCOMs will take the solar energy program to the grassroots level and will lead to substantial savings for households,” said SN Goel, Chairman & Managing Director of Indian Energy Exchange. Goel adds that the centre’s policy mandating phased blending of CBG for CNG and PNG will help in greening the gas supply chain.

“The interim budget provides a robust blueprint for Viksit Bharat. It comprehensively addresses all sectors of the economy, with a specific emphasis on fostering innovation, research, and entrepreneurship. Setting up a corpus of 1Lakh crore & providing 50-year low interest loan for tech-savvy youth will scale up research and innovation. The budget also demonstrates a noteworthy commitment to sustainability, particularly in the energy sector. Promotion of solar rooftop installations, provision of 300 units free power every month to 1 crore households, mandatory blending of Compressed Biogas (CBG) with CNG & PNG, and incentives for Offshore wind energy will ensure energy accessibility, affordability, and availability. There is also a noteworthy focus on strengthening of the EV ecosystem by supporting the charger manufacturing infrastructure. Increasing the no of EV buses on the roads is a welcome environmentally friendly step,” reflected Deepak Sharma, Zone President, Greater India, MD & CEO, Schneider Electric India.

“We welcome the steps outlined by the Finance Minister in the Interim Budget 2024-25, to boost the bio fuel sector. The mandatory blending of Compressed Bio Gas (CBG) into CNG and PNG will reduce dependency on traditional fossil fuels and will promote the efficient recycling of organic waste into a valuable resources. Moreover, the launch of new schemes for bio-manufacturing and bio-foundry, along with financial assistance for biomass aggregation machinery procurement, reflects the government’s holistic approach towards promoting green growth and supporting ‘Waste to Wealth’ mission,” said Mahesh Girdhar, MD and CEO of EverEnviro Resource Management Pvt Ltd.

Sanjay Gupta, Chairman & MD of APL Apollo Tubes Limited further said, “We salute the government’s visionary interim budget that resonates with the spirit of ‘Viksit Bharat’ and the collective dream of achieving a $5 trillion economy. We welcome the move towards transparency, accountability, and a people-centric approach to create a nurturing economic environment for homegrown companies. The belief that the country is capable of creating boundless opportunities with the sky as the limit fuels our ambition to empower the swift development of the nation’s infrastructure.”

Speaking of PM-KISAN SAMMAN Yojana and PM Fasal Bima Yojana, Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt Ltd stated, “We appreciate the government’s focus on the initiatives outlined in the Union Budget 2024-25. The acknowledgment of farmers as our ‘Annadata’ and the various schemes, such as PM-KISAN SAMMAN Yojana and PM Fasal Bima Yojana, providing financial assistance and crop insurance, demonstrate a commitment to the welfare of the agricultural community. The integration of 1361 mandis through the Electronic National Agriculture Market is a positive step towards creating a more efficient and connected agricultural ecosystem. This will not only benefit farmers but also contribute to the overall development of the rural economy.”

Talking about infrastructure, Vikramjiet Roy, Managing Director, Maccaferri India quoted, “We welcome the government’s focus on infrastructure creation which is expected to be an economic force multiplier and also lead to a positive cascading effect on ancillary industries and lend to job creations. The multifarious initiatives to boost agricultural productivity is also a part of the piece. This infrastructure push, which entails development of triple railways corridors as well as well as the construction of airports is expected to catalyse investments and spur demand in sectors such as steel, cement, iron ore and transportation.”

Arun Shukla, President and Director, JK Lakshmi Cement said, “We applaud the Honourable Finance Minister, Shree Nirmala Sitharaman, for crafting the visionary Union Budget 2024-25, a blueprint that aligns profoundly with our ethos of inclusive development. We welcome the Government of India’s commitment to fostering growth, sustainability, and inclusivity. The significant increase in infrastructure outlay to INR 11.11 lakh crores and the emphasis on green growth shows the Government’s pursuit to propel our nation towards economic excellence.”

Neeraj Akhoury, President, Cement Manufacturers’ Association (CMA) and Managing Director, Shree Cement Limited.

“This Budget retains its intent to continue the rapid growth momentum keeping a sharp focus on medium and long-term vision. The strong thrust on research and innovation with infrastructure development is a move in the right direction. The sustained emphasis on good governance will also help in further Ease of doing business and strengthen the foundations for an Atmanirbhar Bharat. The Cement Manufacturers’ Association welcomes the announcement for cement corridors under the Railways that would help improve logistics efficiencies and boost multimodal connectivity.”

Parth Jindal, Vice President, Cement Manufacturers’ Association (CMA) and Managing Director, JSW Cement Limited

“At the core of the announced Budget are speed, innovation and scale, which are indeed driving India’s economic growth engine. There is a continued emphasis on inclusive growth embracing health, infrastructure development, rural upliftment, enterprise, research and innovation that stand to consolidate Government’s efforts for making India a formidable player in the global economic order. The allocation to key sectors such as housing are steps in the right direction as these would both foster growth with employment. The Cement sector applauds the Hon’ble Finance Minister for providing a clear direction for the Country’s future growth.”