Budget 2019-20 unveiled a slew of reforms for the construction sector. Government has also allocated ₹19,000 crore to Gram Sadak Yojna, benefits of which could filter down to civil infrastructure industry buoying demand for construction equipment (CE) sector.
Industry experts are of the view that despite being interim in nature, Budget 2019-20 would play out in favour of common man and has breathed new life not merely into infrastructure sector alone, but also the power and energy sector.
While real estate was going through a tough time after post GST and RERA introduction, the government is taking proactive measures to help housing and real estate segment in particular, and has permitted interest in exemption of IT for two houses.
“Increasing or exempting tax for the employed, income of up to ` 9 lakh will help the real estate segment. The additional benefit is likely to boost readymix concrete industry in India,” says V.G. Sakthikumar, Managing Director, SCHWING Stetter India.
Besides, most of the other infrastructure projects like roads, railways, ports, power, etc., are already doing good due to ongoing projects. Budget 2019 is addressing the requirements of these projects. Amendments proposed in the interim budget in favour of the real estate sector, particularly affordable housing, will also benefit allied sectors like cement and steel Some key announcements on ancillary sectors will play out in favour of the cement industry. The vision 2030 for Next-Gen Infrastructure development which mentioned airports, inland waterways, road and rail development, will definitely translate into great opportunities for infrastructure and construction business. This will also tie into the governments vision for employment increase as India’s push for rapid infrastructure growth will position the cement industry as an opportunity employer with 20,000 downstream jobs for every million ton of cement produced, according to industry experts.
Infrastructure sector is currently witnessing influx of projects like bridges, dams, roads and urban infrastructure development.
Modest increase in public spending for infrastructure is credit positive. The planned increase in public infrastructure spending is credit positive for companies in this sector. Capital outlays for key segments within infrastructure, like highways and railways, will increase modestly in fiscal 2019 from fiscal 2018. The budget does not include any change in taxation structure for companies in the infrastructure sector, according to Moody’s Investor Service.
The government is giving impetus on initiating policies that would ensure time-bound creation of world class infrastructure in the country through policies such as open FDI norms, large budget allocation to the sector, Smart Cities Mission, etc.There is also growing interest from international investors in the infrastructure space.
Even though Budget 2019 is only interim, we appreciate the proactive measures to help housing and real estate segment.
V. G. Sakthikumar, Managing Director, SCHWING Stetter India
Housing demand to surge with measures like no income tax on notional rent on second self-occupied home, capital gains.
Ramratthinam S – CEO, MuthootHomefin (India) Limited
Room for implementation of solar pumps in the agricultural sector likely, strengthening India’s water and energy security further.
Ranganath N.K, Managing Director, Grundfos India
National centre for AI, AI portal development via identification of nine priority areas in the segment will be critical.
Vartul Jain, VP – Finance, GreyOrange
Focus remains on the nation’s economic growth and brings a positive sentiment in the real-estate industry.
Sanjay Dutt, MD & CEO, Tata Realty Limited
Ease of living, consolidating real estate will provide comprehensive social security boosting the 10-trillion dollar economy vision.
Rohit Poddar, Managing Director, Poddar Housing and Development Ltd
Government has announced to strengthen the Sagarmala Project which is a positive step towards transforming the nation.
Piyush Sinha, Deputy Managing Director, NEC Technologies India Pvt. ltd.
Steps could percolate into direct and indirect benefits to the housing sector. Impetus on affordable housing was reiterated.
Sankey Prasad, Chairman and MD, Synergy Property Development Services
Various sectors under organised and unorganised segments have been covered. Benefit to empower rural and agro economy was key.
Mahendra Singhi, President, Cement Manufacturers Association and MD & CEO, Dalmia Cement (Bharat) Ltd.
Objectives like boosting consumption, strengthening the agriculture sector and reducing urban-rural gap will be met.
Sangeeta Prasad, MD & CEO, Mahindra Lifespace Developers Ltd.
The interim budget has struck the right chord on several fronts – building next-gen infrastructure or building stronger digital India.
Madhusudhan G., Chairman and MD, Sumadhura Group
While affordable housing gained, extension of tax relaxation on notional rent for unsold inventory for another year cheered developers.
Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants