Sebi Joseph, President, Otis India:
“The Union Budget 2017-18 aims at comprehending the dream of building a transparent and sustainable economy by providing an impetus to rural economy, road infrastructure, airports and railways, which is a welcome move. The focus on few crucial aspects like digital and black economy augurs well. Increasing spends on capital expenditure and infrastructure, and provisions to generate more employment opportunities, are some of the few pivots that can support India’s rapid growth. Provisions of a New Policy for Metro Rail and the proposed investment in making 500 railway stations disabled friendly will help provide a boost to the Elevator and Escalator industry in the long term”
Kamal Khetan, Chairman and Managing Director, Sunteck Realty:
“The Modi Government has been ushering in key initiatives to drive India’s economic growth and social welfare over the last few years. The Union Budget 2017 continued in the same direction and came across as a very balanced and progressive budget. The focus on economic growth was clear from the record high allocation towards infrastructure. From the real estate sector perspective, the ‘Housing for all by 2022’ initiative got a further boost through the coronation of Infrastructure status to the affordable housing segment. This will help lower the cost of borrowing, provide easier access to foreign funds like ECBs. Another initiative to promote affordable housing was that under the scheme for profit-linked income tax deduction, carpet area will now be counted instead of built up area of 30 and 60 Sq.m. The time frame for completion of such units was also increased from within 3 years of approval to 5 years. Also, the time-frame for long-term capital gain tax on properties has been reduced to 2 years from 3 years which should provide a major push for ready/near ready inventories. Other measures included higher allocation for the Pradhan Mantri Awaas Yojana – Gramin amongst other things. Overall, a confluence of the above factors and the recently reduced interest rate on home loans should help attract more investments into the housing sector and uplift the demand scenario.”
Sachin Sandhir, Global Managing Director – Emerging Business, RICS:
“The Budget 2017 broadly focussed on farmers, rural economy, infrastructure, affordable housing, youth, employment, digital economy and fiscal discipline. We believe that it is a fairly balanced Budget. The decision to invest in rural areas, infrastructure and poverty alleviation whilst maintaining fiscal consolidation is to be applauded. We are glad the government has recognised this with its announcement that it will count carpet area of 30 and 60 sq meters for affordable housing instead of built up area. The limit of 30 sq meters applies only in municipal cities of four metropolitan cities and in the rest of the cities the limit is 60 sq meters, which will increase housing size by 30%. This will incentivize affordable housing for developers who were earlier deterred by the small size of homes.Infrastructure is a priority for this government. The allocation for infrastructure is substantial at over INR 3,90,000 crore. It has provided INR 2.41 lakh crore for transport sector, including railways, road and shipping. Allocation for national highways has been increased to INR 64,000 crore from INR 57,676 crore. Higher investment in infrastructure is much needed and will spur economic growth.”
Dharmesh Jain, CMD, Nirmal Lifestyle and President, CREDAI-MCHI:
“Budget 2017 is a very good growth oriented budget. Infra status for affordable housing is an excellent move and is welcomed by all the developers. Increasing the limit of affordable housing to 30 and 60 metres carpet in non-metro area is great and developers would request the CM to extend it further to metro areas as well. Smaller companies and also the corporate tax benefits is again going to benefit large number of companies across the country. Over all great efforts have been put into infrastructure which will boost economic activity. Budget will favour the economy in the upcoming months of this year. Cost of capital on affordable housing will come down and affordable housing will have access to long term funding which is critical in the current situation and benefit the customers.”
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