Union Budget 2021 India: It is a progressive Budget on multiple counts, including health, sanitisation, new institutional structures and the infrastructure needs of the economy.
Union Budget 2021: India’s Union Budget 2021 is focused on providing a stimulus to the economy via the six pillars of health and well-being, physical and financial capital and infrastructure, inclusive development, human capital, innovation and R&D, and ‘minimum government, maximum governance’. It is a progressive Budget on multiple counts, including health, sanitisation, new institutional structures and the infrastructure needs of the economy.
In terms of residential real estate, we welcome the proposal to extend the additional Rs 1.5 lakh tax exemption available to first time affordable home buyers until March 2022. This will boost end-user demand for affordable homes.
Affordable housing projects can also avail a tax holiday till March 31, 2022, which is a supply side stimulus that will aid real estate developers. Combined with low home loan interest rates, these initiatives are expected to provide a strong stimulus to affordable housing markets.
This year’s Budget, with its thrust on domestic manufacturing and ease of doing business, presents a balanced approach to FDI that further strengthens India’s attractiveness as an investment destination. Alongside multiple commendable growth plans for the infrastructure sector, the Union Budget of 2021 has also identified warehousing and allied services for the asset monetisation programme for core infrastructure assets.
These initiatives will help drive the growth of the infrastructure sector and bodes well for planned industrial parks and integrated cities. This move comes at an opportune time, given the China+1 diversification plans of companies across the globe.
We have seen many multinationals approach our industrial clusters and integrated cities for plug-and-play services and look forward to a further influx of enquiries following FM’s Budget announcements.
Additionally, the focus on infrastructure will accelerate development of urban metro-rail networks, highways, logistics and warehousing, and airports. These initiatives are being planned across tier-2 cities and will improve connectivity across growth corridors.
Last but certainly not the least, as a pioneer of green buildings in India, we welcome the plans for energy transition and increasing investment in renewable and sustainable energy initiatives. With growing multi-stakeholder awareness of the importance of green buildings and environmentally ‘conscious’ construction, the government’s support of such initiatives is laying the groundwork for an urban India that is environmentally resilient and responsive.
The author is MD & CEO, Mahindra Lifespaces