Construction sector awaits strong push ahead of Union Budget 2026

“While GST does not formally fall within the Union Budget, we would like to see a clear policy signal from the Finance Minister that input tax credit (GST set-off) for residential construction will be reinstated. This will materially improve project viability, reduce embedded costs, and ultimately benefit homebuyers through more efficient pricing,” Rohit Gera, Managing Director, Gera Developments.

“Additionally, given the heightened risks to global trade, we expect the Budget to place strong emphasis on stimulating domestic demand while simultaneously enhancing India’s export competitiveness. Measures that lower cost of capital, improve ease of doing business, and support manufacturing and services exports will be critical to sustaining growth momentum in an uncertain global environment,” he said.

The Association said for private industrial contractors, tax incentives for industrial corridors, logistics infrastructure and stronger public-private partnership models are needed to attract investment.

In the housing segment, expansion of affordable housing incentives, GST rationalisation on construction materials, liquidity support and easier access to institutional finance will help address rising input costs. A balanced, construction-friendly Budget will boost employment and accelerate India’s growth,” Gujar said.