Budget needs to focus on promoting infra investment: CII

Further, given the rapidly growing demand for housing from the low middle income population, it is critical to promote low cost housing.

Currently, the government offers interest subvention of one per cent for low-cost housing loans up to Rs 15 lakh, provided the housing cost does not exceed Rs 25 lakh.

"CII recommends that interest subvention scheme is extended to total housing cost of up to Rs 35 lakh. This sector has one of the largest multiplier effects and so, an incentive for investments in low cost housing would create demand in over 200 industry sub-sectors," the statement said.

"The tax benefits under 10(23G) will not only help in fighting the slowdown but will also rein in the sharp increase in dwelling prices that we have witnessed in the last few years," suggested DG, CII, Chandrajit Banerjee.