By Siraj Saiyed,
While the Union Budget 2022 is expected to unveil on February 1st and the Infrastructure, Industrial and the real estate sector look forward to the much needed reforms and incentives. It is evident that the realty sector is coping with adversities and challenges and thus are the expectations from the upcoming Union Budget.
It is amid the pandemic itself when the real estate sector has seen certain innovations and shifts which we can absolutely believe will aid the sector’s growth in the forth coming years. As we are stepping towards the “New Normal”, where on one hand we can see a substantial growth of residential sales, the commercial and the industrial real estate segment is also likely to upthrust. With the sector striving to overcome the pandemic, from the upcoming budget 2022 we expect, the existing tax exemption on housing loans should be raised. Personal income tax could be made easier in terms of heads and filing in the budget. We also expect the budget will further focus on investments in infrastructure and capacity building.
It is during the last year when government made key announcements for the infrastructure sector, which are now under implementation. The upcoming budget is expected to be a stroke of luck for the infra sector. It is expected to take a strong position on aggressive implementation of Gati Shakti (National Master Plan for Multi-modal connectivity). The plan is touted to be a landmark step towards enabling progressive economic growth in India. Along with cultivating infrastructural and industrial growth in India, the Gati Shakti Yojna will escalate economic prosperity.
In today’s era of digitization and urbanisation, though the real estate and infra sector have been witnessing drastic changes in the recent years, taking the graph towards the growth, few of the factors like – shortage of liquidity, increasing raw material prices, issues with land availability, tedious and lengthy approval processes, are worrying industrial developers.
The government by considering the aptitude of the sectors has undoubtedly provided a welcome step. It has offered the industry progressive policies. Witnessing the government taking initiatives and by seeing an evident move towards digitization the current industry trends indicate that the future of the sector looks bright whereas the cost of raw materials will continue to impact the multiple touchpoints of the industry. The leading elements for the industry in the coming years would include affordability, a consumer-centric approach and self-sustaining properties.
As far as markets are concerned, we believe new restrictions being introduced by several states may temporarily interrupt the economic recovery and moderate the growth of tax collections between December 2021 and March 2022.
(The author is Director, ARETE Group. Views expressed are personal and do not reflect the official position or policy of Financial Express Online.)