The Union Budget 2019 presented by the Finance Minister Nirmala Sitharaman has laid major emphasis on start-ups, digital economy, banking reforms and the regular feature of infrastructure development. While no major step has been taken in the construction and infrastructure sector, smaller footsteps have been taken towards its revival. Architecture Update offer view of players across industry sectors.
Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd
“Finance Minister’s proposal to increase basic customs duty on tile and ceramic products to 15% from existing 10% will safeguard the domestic ceramic tile industry from the cheap imports and will strengthen the domestic industry.
To address the problem of duty inversion, custom duty on Marble slabs is doubled to 40% from 20% currently. Tax reforms and tax simplification measures especially moving to electronic invoice system from January 2020 will significantly reduce the compliance issues.
The budget proposals along with government move last year reducing GST on Tiles, Marble and Granite to 18% slab will give a much-needed boost and provide the tiles and marble industry with a level playing field.
Sanitation coverage in rural India has gone up from 42% in Oct 2014 to over 70% and we hope that we should soon achieve maximum coverage. Tiles industry in India is estimated at around Rs. 35,000 crores to Rs. 40,000 crore and growing at healthy single-digit employing over 6 lakh people in direct and indirect employment.”
Rajesh Mehra, Director & Promoter, Jaquar Group
“The budget reinforces affordable housing as one of the key priority areas of the government. We identify ourselves as a key partner in such initiatives along with other important schemes such as clean India which addresses the crucial issue of open defecation, especially in rural areas, as it will lay a strong foundation for a cleaner and healthier India.”
Gaurav Gupta, Director Omkar Realtors & Developers
The first Union Budget announced under the re-elected government was inclined and focused towards affordable housing. Additional exemption in income tax on home loans under affordable housing by 1.5 lakhs for homes upto 45 lakhs is a good step by the Government. This will encourage more and more fence sitters and first-time home buyers to take quick decisions regarding property purchase. It’s a welcome move and we are hopeful that the customers and investors will show interest in the affordable housing sector. This move is expected to result in some momentum in the beleaguered real estate sector.
Jaydev V. Sanghavi, Executive Director, Aarvi Encon Limited
“During the union budget announcement, the government mentioned its plan to spend 100 Lakh Cr on infrastructure and development over the next 5 years. This vision brings out an opportunity to open enormous roadmaps for our country, hoping to generate employability, especially engineers pertaining to the civil sector in order for project executions and constructions, proving to be positive in our line of business activity. Taking India forward through technology in both urban and rural areas, the government also spoke about Big Data and AI which will improve the aspects of decision making, speed and accuracy resulting in the ability to benchmark and track the progress of developmental projects. Thus, recognising to be very promising for years to come.
Overall, this is a positive move by the government as it also acknowledges to look at the labour rules and ease them with times to come.”
Srinivasan Gopalan, CEO, Ozone Group
A sixer budget
“1 lakh crore worth relaxation to the NBFCs is a quick corrective remedy to pump in enough liquidity. The move will help the NBFCs to overcome the current crisis and will bring much-needed relief to the real estate sector as the liquidity crunch issue will be addressed. More funds into the sector will result in faster completion and timely delivery of the projects. This, in turn, will lift buyers and investors sentiments in the sector.”
“Sanction of 100 lakh crore in India’s infrastructure is a thoughtful move. The sanction will boost the infrastructure in the country thereby giving much-needed support to the real estate segment. Mumbai’s unprecedented growth in the areas of infrastructure and increased connectivity in the last 5-10 years towards connecting different parts of the city has resulted in a demand for housing largely.”
Rohit Kharche, Director, The Baya Company
“The Union Budget 2019 has paved the path for several reforms that will be undertaken to promote rental housing and the renewal of current rental laws that are archaic, which has been long overdue.
The real estate industry needs to be granted infrastructure status which will ensure easier access to institutional credit and help in reducing developers’ cost of borrowing for affordable projects. However, it is reassuring to see the government’s persuasion and the constructive measures taken towards providing a thrust to affordable housing, promoting ease of living and eventually aligning to their long term vision of “Housing for all by 2022”.