Industry reactions on Union Budget (Part-6)

Eshita Surana Poddar and Priyanka Surana Bardia, Directors, Aakash Aath 
"The 2023 Budget presented by the Union Government is Youth Centric and is wholeheartedly committed to make India a self-reliant and an environment friendly country. Rendering recognition and economic assistance to the traditional artisans and craftsmen of India will undoubtedly contribute towards an inclusive development. Post the phase of prolonged pandemic the Central Government's special emphasis on accelerating the influence of high level Artificial Intelligence in all the important areas is a radical approach. It is going to involve minimum resource utilisation with a fast, maximum and an effective output. Lastly, the lowering of income tax rates provided would significantly benefit the people at large."
 

Nandan Mall, Chairman & Managing Director, Hulladek Recycling Pvt Ltd
"Very happy to see the focus on the solid waste management treatment and processing facility. Also happy to know about the initiatives taken in the waste 2 energy sector".

R Jeswant, CEO, Funskool India Ltd.
“The increase in basic Duty on Toys and parts of Toys (other than parts of electronic toys) to 70% is a boost to Domestic Manufacturers and will help in India developing into a manufacturing hub for toys, as envisaged by our Prime Minister.”

 Ashhish Vaidya, Managing Director and Head of Treasury & Markets, DBS Bank India
"The Budget was directionally a growth-oriented one with reasonable revenue assumptions and rightly focusing on Capex buildout, inclusivity and digitization. It has also given a fillip to broad based consumption growth by putting more money in the hands of the consumer.”

Prem Kishan Gupta, Chairman & Managing Director, Gateway Distriparks Ltd.
“The budget presented by our Finance Minister announced a positive outlook for the Indian logistics sector, with the Government of India focusing on modernizing and upgrading the sector to improve its competitiveness and efficiency.

In a big positive, the government has identified 100 critical transport infrastructure projects for last and first mile connectivity for ports, coal, steel, fertilizer, and food grain sectors. They will be taken up on priority with an investment of  ₹ 75,000 crore, including ₹ 15,000 crore from private sources. Additionally, ₹ 2.40 lakh crore have been allocated for the Indian Railways' capital expenditure. This expenditure is the highest ever, and the remaining works of WDFC will be completed in fiscal 2024. It will boost the movement of goods from roads to railways.

Small businesses in the logistics sector can avail themselves of tax benefits and subsidies, which will help them grow and expand. Moreover, the government has announced measures to promote domestic manufacturing in certain sectors, which is set to offer the logistics sector the much-needed impetus to exponentially expand the demand for goods transportation and warehousing services within the nation.”

Prof. Y.S.R. Murthy, VC, RV University on Union Budget 2023-24
 
 
“I.                Positive features:
The emphasis in the Union Budget on teachers’ training,  digital infrastructure, medical research and pharmaceuticals are welcome indeed. Establishment of 157 new nursing colleges will go a long way in filling critical gaps in skilled manpower in the health sector. The proposal to develop district Institutes of education and training as vibrant institutes of excellence will boost teacher training at a sub national level. The Government’s proposal to recruit 38,800 teachers and support staff for the 740 Eklavya model residential schools, which is serving 3.5 lakh tribal students is an important step towards inclusive development and social justice. Setting up of 100 labs for 5G services in engineering institutions will help in our quest to improve employment.
 
 
II.              Areas of concern:
1.  We cannot just be contented with mere allocations. What is critical is to ensure that whatever that has been budgeted and approved by the Parliament has been fully utilised. If one carefully analyses the budget documents that were presented today, the revenue expenditure under social services include expenditure on general and technical education. As against budget estimate of Rs. 53,382 crore (general education and technical education combined) in 2022-23, the revised estimate is only Rs. 50,638 crore. In a very high priority area like education, spending has been reduced by Rs. 2,744 crore, which is a matter of concern.
 
2.  Financing education: The Union Budget for 2023-24 has proposed a 13% increase in allocation on education as compared to previous fiscal year 2022-23(RE). Health and education are critical components in the Human Development Index. The expenditure on these critical sectors is not commensurate with the needs of these sectors. It is a very important requirement, and it should have been prioritised. Education expenditure as a percentage of GDP has increased in a tiny way from 2.8% of GDP in FY 19 to 2.9% in FY23. 0.1 per cent point increase in four years is miniscule compared to the requirement of the sector. China and Australia are investing a great deal on education. India cannot aspire to become a Vishwa Guru or become a major economic power unless we invest in education. NEP stressed the need for allocation of at least 6% of GDP on education, an aspirational goal for nearly one decade now.
 
3.  As a Vice Chancellor of a State Private University, I find that fiscal and other incentives to promote private sector participation in education and skilling are missing. N.R. Narayana Murthy Committee made some sound recommendations way back in 2012 in this regard including the Indian Corporate Higher Education Scholarship with a corpus of Rs.1,000 crores and the National Educational Loan Fund of Rs.100,000 crores.  None of these recommendations have been implemented so far.”

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 lakh crore. 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.”

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.”

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.”