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Budget Reactions

Published in Corporate Wednesday, 01 February 2023 17:14
Ankit Kansal, Founder & MD, 360 Realtors
In the budget session, GOI has shown its commitment to systematically dismantling structural bottlenecks, fueling infrastructure growth, and working on the fundamentals. The INR 10,000 Crore urban infrastructure fund is a welcome step, as this will help Tier 2 and 3 cities and bridge their gap with larger metros in India. This will also fuel demand for commercial and residential real estate in such parts of the country.  The government has also increased capital expenditure to INR 10 lakh crores, almost three times than compared to 2019. Increased investments towards urbanization, power, water supplies, construction activities, etc. will naturally invigorate realty demand by catalyzing economic growth and urban development.
 
Harpal Singh Chawla, Director, Spaze Group
In order to achieve the government’s third economic agenda of ‘Infrastructure and Investment’, the Finance Minister, in her speech, eloquently announced that the capital expenditure will be increased by 33% to bolster the infrastructure apparatus and urban town planning of the country. This will invariably sate the demands of the residential and commercial real estate sector. The allocation of Rs 10,000 crores to urban infra fund development will also bring a flux to the realty sector, pushing the demand rate upwards. The 66% rise in the PMAY funds to 79,000 crores bodes well for the affordable housing sector and will lead to a resurgence in its absorption rates.
 
Amit Jain, Director, Mahagun Group
The Prime Minister Awas Yojana Fund has always been always the nub of the Union Budget, and this year as well, the Finance Minister announced an increase in PMAY Fund to 79,000 crores which is a considerable large fund expansion by 66% from Rs 48,000 crores allocated last year. The government has pressed the development of affordable housing and, through successive budgets, has also provided an impetus to affordable residentials through groundwork applications and policy announcements. The government has also pivoted the growth of infrastructural development by enlarging the funds allocated in the capital expenditure Budget. The funds allocated this year is Rs 10,000 crores p.a. The startling fact is that it is commensurate to 3.3% of the GDP. The government is adopting a multi-pronged strategy to bolster infrastructural seamlessness, connectivity, job opportunities, and socio-economic reforms to bring holistic development metrics and parameters across the country, through public-private partnerships.
 
 Sumit Agarwal, Director, Sales & Leasing, Bhutani Grandthum
The Union Budget 2023-24 is a progressive and forthcoming budget. Introduction of sound and accountable policies, expansion of fund allocations, socio-economic growth catalysts and measures to accentuate “Ease of Doing Business” was the central focus of the Budget 2023, referred to as the first Amrit-Kaal Budget. The real estate sector will pay dividends from many of the key announcements made by the Finance Minister. Boosting the paradigms of infrastructural connectivity, the capital expenditure funds have been prominently increased to Rs. 10 Lakh crore to elevate the urban planning substratum and ratchet up holistic development in multiple corridors. This will boost the commercial real estate sector, which considerably depends on infrastructural robustness for consumer attraction. The proposal to increase the allocation made towards the Pradhan Mantri Awas Yojna by 66% to Rs.79,000 crore this year will help the government to achieve its goal to provide overall growth of the Real Estate Sector.
 
Mr. Harvinder Sikka, MD, Sikka Group
With the Indian economy expanding to become the fifth largest in the world, the Union budget has included significant real estate investments. The announcement of expanding the PM Awas Yojana Fund by 66% to Rs 79,000 crores benefits both developers and buyers. Multiple factors for the overall growth of the real estate sector have been revealed in the Union budget, including a 33% increase in capital investment outlay to Rs 10 lakh crore, as declared by the Finance Minister in her address, and the government's ambition to make available Rs 10,000 crore p.a. for the urban infra development fund. The country's per capita income has steadily increased, significantly benefiting the real estate sector. The declaration of income tax exemption for incomes up to 7 lakhs would also help real estate because it will provide relief to middle-class buyers.
 
Deepak Kapoor, Director, Gulshan Group
The increased spending on infrastructure, while on the one hand, increasing prosperity, will also boost economic prospects, which will encourage both the housing and commercial realty segments. Further, an increase of 66% to a record Rs 79,000 crore in allocation for the PM Awas Yojana Fund, a jump of 33% to Rs 10 lakh crore in capital investment outlay, and the desire of the government to make available Rs 10,000 crore p.a. for urban infra development fund, as announced by the Finance Minister in her budget speech are also expected to aid the growth the real estate development. A rebate in the income tax rates will indirectly boost the real estate sector.
 
Mr Amit Modi, Director, County Group, President CREDAI (WUP)
More than 39,000 compliances reduced to enhance ease of doing business and over 3400 legal provision decriminalised is the biggest take away for in this years budget, while we await the fine print, we hope that it also includes compliances related to Real Estate industry for ease of doing business.
 
We also welcome initiatives like 
1) States and cities encouraged to take up urban planning.
2) The outlay for PM Awas Yojana was enhanced by 66 per cent to over Rs 79,000 crore.
3) Fifty-year loan to states to be spent on capital expenditure within 2023-24 towards issues like 
a) Urban planning reforms and actions.
b) Housing for police personnel.
c) Construction of Unity Malls.
 
Ashwinder R Singh, CEO Residential, Bhartiya Urban
Exemptions of taxes up to Rs 7 lakh are a welcome and populous step in promoting the new tax regime, which was introduced in 2020, and improving disposable income, propelling first-time buyers in the salaried class to act on their dream of buying their first home and making it a reality.
 
 Sanjay Sharma, Director, SKA Group 
The Union budget has unveiled multiple factors for the overall growth of the real estate sector, including a 33% increase in capital investment outlay to Rs 10 lakh crore, as declared by the Finance Minister in her address, and the government's ambition to make available Rs 10,000 crore p.a. for the urban infra development fund. The per capita income of the country has continued to improve over the years bringing major benefits to the real estate sector. The announcement of income tax relaxation for the income of upto 7 lakh will also be a boon to real estate as this brings a relief to middle-class buyers.
 
 Salil Kumar, Director – Marketing & Business Management, CRC Group
The Union budget has unveiled multiple factors for the overall growth of the real estate sector, including a 33% increase in capital investment outlay to Rs 10 lakh crore, as declared by the Finance Minister in her address, and the government's ambition to make available Rs 10,000 crore p.a. for the urban infra development fund. The per capita income of the country has continued to improve over the years bringing major benefits to the real estate sector. The announcement of income tax relaxation for income of up to 7 lakhs will also be a boon to real estate as this brings relief to middle-class buyers.

Manoj Gaur, President CREDAI NCR and CMD Gaurs Group 
 
Through the Union budget 23 – 24, the Government continues to focus on the empowerment of youth, women, OBCs & farmers. With a keen focus on the future of the country with a growth-oriented budget, we applaud the FM’s vision of enabling an inclusive and sustainable development growth chart for infrastructure. An increased capital outlay for a third year in a row to INR 10 Lakh crores amounting to 3.3% of the GDP, a hike of 66% to over 79,000 crores for PM Awas Yojana and the 9000 Cr Credit Guarantee Scheme for MSMEs, will have a positive multiplier effect on economic growth and help realize the PM’s vision for ‘Housing for All’. Continuing its focus on urban planning reforms to develop sustainable cities for tomorrow, the allocation of INR 10,000 crores to the NHB for infrastructure development, the highest ever railway outlay at Rs 2.4 lakh crore and increased regional connectivity through 50 more additional airports, helipads, water aero drones, advanced landing grounds will also boost affordable regional connectivity and will add impetus for infrastructure development, especially in tier-2 and 3 cities which will help the Indian economy to remain less impacted by a global slowdown.The Union Budget 2023 – 24 focuses on controlling fiscal deficit, reducing compliance burden as more than 3,400 legal provisions have been decriminalised to improve ease of doing business. CREDAI congratulates Hon’ble FM for presenting an inclusive and forward-looking budget.
 

 Aashisha Chakraborty, bestselling author, columnist, poet
 
 
"Being the last full budget before the Lok Sabha elections in 2024, a lot of pressure on fiscal resources will have to be balanced with maintaining a feel-good factor among the people. The worst affected group by the recession in the West would be women and the youth with diminishing job opportunities and exports. It will be a challenge to orchestrate and promote opportunities for the youth, women, artisans, the working middle class, the rural and the unorganized sectors. All in all, an enormous responsibility lies on the government's shoulders to make the economy robust."

 

 Ravi Annavarapu, President, FMC India

 

It's largely a positive budget for agriculture. We welcome the government’s effort to modernize Indian agriculture with the introduction of digital public infrastructure for agriculture, Agri Accelerator Fund, Value chain linked PPP initiative on cotton, promotion of healthy planting material and enhanced agriculture credit target apart from farmers-led decentralized storage capacity build up through cooperatives. This budget will promote R&D, innovation, and digitization of agriculture apart from promoting disruption through the startup ecosystem. We see this supportive of precision agriculture and make farming more sustainable. What would further help will be providing tax incentives for R&D and extension services to corporates. The government focus on natural farming will be served better if it can layout clear guidelines for introducing global biological or microbial technologies for the farmers to manage the potential crop loss due to pests and promoting Integrated Pest Management. Agriculture loses more than INR 2 Lakh Crores worth of crops to biotic pressures. Government will do well to align the regulatory system to expedite introduction of newer technologiesin agriculture. 

 

 

 Sandhya Naidu Janardhan, Founder & MD, Community Design Agency 
 
 
"It is encouraging and timely that the Government of India has included sustainable cities of tomorrow and developing key infrastructure in Tier 2 & Tier 3 cities as an important part in the 2023-24 Union Budget. In the backdrop of India's presidency of the G-20 summit this year, and our crucial role in negotiations around climate change and adaptation funding for developing economies at COP 27 last year, we see incredible opportunities for inclusive and integrated approach to building climate resilient and sustainable green cities." -Sandhya Naidu Janardhan, Founder & MD of Community Design Agency
 
 
Banwari Lal Sharma, CEO, Consumer Business, CarTrade Tech Ltd. 
 
" The Union Budget 2023-2024 announced by Finance Minister Nirmala Sitharaman is progressive, prudent and growth-led, with an eye to provide impetus on the savings of the public. It is a 'green budget' for the automotive and mobility sectors. The sustainability measures taken through announcements on green hydrogen and other energy sectors will help in furthering the government’s target of carbon neutrality by 2070. The increased Capex outlay on energy transition is likely to spur investments and skill development in a green economy.


The viability gap funding for battery energy storage systems is also likely to create critical infrastructure, while custom duty reduction on capital goods for Lithium batteries manufacturing will facilitate faster adoption of EVs.

Increase in spending on infrastructure, setting up of 50 new airports and heliports, creation of 100 transport infrastructure projects are welcome moves, in addition to the central support for replacing old vehicles. All of these should drive consumption and overall demand of vehicles."
 
 
 Pankaj Sharma, Co-Founder & Director, Log9 Materials: 
 
The proposed Customs duty exemptions on the import of capital goods and machinery required for the manufacturing of lithium-ion batteries bring in a new lease of life for all battery manufacturers as it would help accelerate the country’s production capacity and also gives the much-needed momentum to the country’s vision to become self-sufficient in its EV needs.



 

Nikhil Agarwal, President-CJ Darcl Logistics for your perusal. 

 

Mr. Nikhil Agarwal, President-CJ Darcl Logistics said, “This is the first Budget of Amrit Kaal, and we believe that this is a budget aimed at fostering growth. We are sure that the huge rise in capital expenditure by 33% will have an incremental effect on the overall growth of the economy. Infrastructure sector is the backbone of any economy, and the government has been pushing for the sector’s growth for its multiplier effect and linkage effects in terms of job creation. Infrastructure and development are among the seven priorities of the Budget 2023. The newly announced one hundred critical transport infrastructure projects will help the country to ensure energy and food security as these are critical for India as it targets to become the third largest economy in the world in the next 6-8 years. The government has also decided to inject 2.40 lakh crore in railways in order to derive the positive outcome on environment sustainability.

 

 

As Budget 2023 focuses on promoting coastal shipping, it will play a critical role in the economy's competitiveness, expansion, and long-term sustainability, which is an under tapped sector at the moment. Also, the announcement of 100 Labs for developing applications using 5G services will bring in changes across the transport sector including increasingly smart and efficient logistics and improved urban transportation with the implementation of Mobility as a Service (MaaS) platforms. The Budget 2023 

 

Samir Jasuja- Founder & CEO- PropEquity.

 

Mr.Samir Jasuja - Founder & CEO - PropEquity, “The 66% increase in the allocation to Prime Minister Awaas Yojana to INR 79,000 crores is a sure boost for affordable housing. This is another step towards the government's 'Housing for All' mandate. The Budget lays much emphasis on building the infrastructure of the country, with emphasis on last-mile connectivity. The unwavering focus on infrastructure will indirectly drive real estate growth over the next one year.”

 

"Changes in income tax rates, including exempting income up to INR 7 lakh under the new tax system and rates, will undoubtedly benefit the middle class. However, it remains to be seen whether the real estate sector will have a collateral boost.” He added
 
 
Rajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India Pvt. Ltd.
 
Mr. Rajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India Pvt. Ltd said,"The budget 2023 is oriented to economic growth of the country. I am sure that 33% growth in capital expenditure will result in balanced development. This is a smart move since it will help the country achieve its goal of becoming a 5 trillion-dollar economy and a global powerhouse. I believe that the announcement of setting up 100 labs to effectively develop 5G services and the vision to promote Artificial Intelligence in overall industries is a strong step by the government. This will further lead to automation in the industries which will help in propelling India’s growth and promoting smart cities. The union budget 2023 has come up with positive announcements for different sectors to support the Make In India initiative and can result in balanced growth in the near future.
 
 
 

Quote on Consumption by Pushan Sharma, Director-Research, CRISIL Market Intelligence & Analytics

 

Private consumption as a share of nominal GDP has reduced from 61% pre-pandemic (fiscal 2020) to 59.6% in fiscal 2022, pointing to a slowdown in household spending. Tax rebates and propositions will result in higher disposable income, giving a fillip to consumption. It will also come as a sigh of relief to sectors such as FMCG, consumer durables and two-wheelers, which are already battling high inflation. Increase in National Calamity Contingent Duty on cigarettes will push up product prices, impacting demand.

 

 

 

--Nikhil Agarwal, President- CJ Darcl Logistics

 

Mr. Nikhil Agarwal, President-CJ Darcl Logistics said, “This is the first Budget of Amrit Kaal, and we believe that this is a budget aimed at fostering growth. We are sure that the huge rise in capital expenditure by 33% will have an incremental effect on the overall growth of the economy. Infrastructure sector is the backbone of any economy, and the government has been pushing for the sector’s growth for its multiplier effect and linkage effects in terms of job creation. Infrastructure and development are among the seven priorities of the Budget 2023. The newly announced one hundred critical transport infrastructure projects will help the country to ensure energy and food security as these are critical for India as it targets to become the third largest economy in the world in the next 6-8 years. The government has also decided to inject 2.40 lakh crore in railways in order to derive the positive outcome on environment sustainability.

 

As Budget 2023 focuses on promoting coastal shipping, it will play a critical role in the economy's competitiveness, expansion, and long-term sustainability, which is an under tapped sector at the moment. Also, the announcement of 100 Labs for developing applications using 5G services will bring in changes across the transport sector including increasingly smart and efficient logistics and improved urban transportation with the implementation of Mobility as a Service (MaaS) platforms. The Budget 2023 has demonstrated a good balance between today’s needs and the future’s demand.

 

 

 

 

 
 
 

 

 
Last modified on Thursday, 02 February 2023 13:42

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