Budget 2020-21: Climate change is the new reality of this age — one that we must address with urgency to ensure a safe and secure future for forthcoming generations.
By Sangeeta Prasad
Union Budget 2020: The 2020-21 Union Budget of India is a balanced and holistic one that incorporates various measures, ranging from infrastructure development to job creation and digital connectivity to climate action.
Boost to affordable housing
Affordable housing has emerged as a key growth driver in India’s real estate industry over the past few years. A year’s extension on both the additional reduction of `1.5 lakh for interest paid on affordable housing home loans and the tax holiday provided to developers of affordable homes will boost supply and revive demand in the segment. The affordable housing segment also stands to gain due to lower personal tax rates on income of up to Rs 15 lakh, which will stimulate demand among first-time homebuyers and widen the market opportunity for trusted developers in the category.
Push for infrastructure
The government has launched Rs 103-lakh crore infra projects to augment India’s infrastructure. These infrastructure development projects will span sectors such as housing, metro and railways, highways, logistics and warehousing, irrigation, airports, clean energy, and healthcare and educational institutes. These projects will support industrial activity and create new opportunities for employment.
The Budget also acknowledges the significant employment opportunity that exists in construction, and in the operations and maintenance of infrastructure projects. The associated focus on infrastructure-focused skill development is a welcome move.
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Focus on data centres and warehousing
The proposed policy for the development of data centre parks indicates a renewed thrust on data as a valuable resource that will fuel the nation’s growth. Data is truly the new oil! The resulting improved connectivity will boost industrial production, attract investments, encourage domestic manufacturing and promote ‘Make in India’.
Focus on climate action
Climate change is the new reality of this age — one that we must address with urgency to ensure a safe and secure future for forthcoming generations. The allocation of funds to support clean air in India’s cities is thus commendable and in close alignment with our core philosophy of transforming India’s landscape by developing sustainable and environment-friendly urban communities. The measures announced will support emission reduction targets, in line with India’s commitment to climate action.
In a nutshell
Union Budget 2020, with its focus on infrastructure, integration of digital technology, augmentation of rural income, future-ready skill development and job creation aims to improve ease of living for the masses. In particular, infrastructure push and tax exemption for start-ups will enhance ease of doing business for SMEs, MSMEs and corporates. These initiatives stand testament to our government’s commitment to inclusive and long-term growth.
The author is MD, CEO, Mahindra Lifespace Developers