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The Budget will bring positive changes

Positive changes for individuals, investors, industry and infrastructure sector

The Budget will bring positive changes

The Prime Minister, Narendra Modi, said that the budget this year has to feel of reality and confidence of development and showcases India’s self-belief. He also said that it would infuse new confidence in the world in these difficult times.

In his remarks after the Union Budget was tabled in the Lok Sabha, the Prime Minister said that the Budget carries a vision of Aatamnirbharta and inclusion of every citizen and section. Modi explained that the Budget principles include expanding new growth opportunities; new opportunities for the youth; giving a new dimension to the human resource; infrastructure development and helping new sectors grow.

The Prime Minister said that the Budget would enhance ‘ease of living’ for the common man by simplifying procedure and rules. The Budget will bring positive changes for individuals, investors, industry and infrastructure sector.

The Prime Minister noted the positive early response that the Budget received within hours of its presentation. He said the Government gave proper attention to its responsibility towards fiscal sustainability while increasing the budget size. He expressed happiness that the experts have appreciated the transparency factor of the budget.

Stressing the Government’s proactive approach, whether, during Corona pandemic or campaign for Aatamnirbharta, the Prime Minister noted that the budget doesn’t have an iota of reactive approach. “We have gone beyond active and have given a pro-active budget”, said the Prime Minister.

 Appreciating the all-round development emphasis of the Budget, Modi said that it is focused on wealth and wellness, MSME and infrastructure. He also noted an unprecedented focus on healthcare. The Prime Minister expressed happiness that the Budget has taken into account southern states’ development needs, the Northeast and Leh Laddakh. He said this is a huge step in turning our coastal states like Tamil Nadu, Kerala, West Bengal into a business powerhouse. The Budget will also help to tap the unexplored potential of the North-Eastern states such as Assam.

Mentioning the Budget’s impact on the various segments of society, Modi said its emphasis on research and innovation would help the youth. Common men and women will benefit from stress on health, swachchta, nutrition, clean water, and opportunities equality. Similarly, enhanced allocation in infrastructure and procedural reforms will lead to job creation and growth.

The Prime Minister said that the Budget has many provisions for the agriculture sector and increasing farmer’s income. Farmers will get easy and more credit. Provisions have been made for strengthening the APMC and Agriculture Infrastructure Fund. “This shows that villages and our farmers are at the heart of this Budget,” said the Prime Minister.

 Modi noted that MSME sector allocation had been doubled to improve employment opportunities. He said the Budget would lay a strong foundation for the new decade and congratulated the countrymen for a Budget for Aatamnirbhar Bharat.

Post-Budget Reactions

Dr Niranjan Hiranandani, National President NAREDCO
Dr Niranjan Hiranandani, National President NAREDCO

Dr Niranjan Hiranandani, National President NAREDCO, commenting on the Annual Budget, said, “It is a get well soon type of Budget, the ‘V’ shaped recovery being powered by the Covid-19 vaccination program.” On real estate aspects, the annual budget proposals reinforce the Government’s focus on affordable housing.

For the home buyer, the second extension of the deadline till 31 March 2022 for the additional Rs1.5 lakh tax deduction given on loans taken to buy a house in an affordable housing project is welcome, as is the developer whose affordable housing projects also get an extension for tax benefits, for projects completed till March 31, 2022. Similarly, tax exemption for notified affordable housing for migrant workers, and the deduction on payment of interest for affordable housing being extended by a year will give a fillip to this emerging segment.

As affordable housing attracts only 1% GST and Rs 1000 stamp duty in the state of Maharashtra will augment affordable housing production in the state. The enhanced spending on public infrastructure projects like ports, railways, airports, warehousing, gas pipelines, metro, economic corridors is laudable and welcomed by an industry that will give impetus to the employment generation and attract the essential investment to lift the economic revival.

“The strong focus on digital covering setting up of a Fintech hub at Gift City, seen in sync with moves to enhance digital payments and use of Artificial Intelligence and Machine Learning etc. in governance, will give a fillip to creation of Digital India,” he concluded.

Given the challenging scenario, the proposed annual budget has been largely positive; no major taxation enhancement is welcome. As the Prime Minister pointed out last year saw mini budgets across the pandemic impacted time frame; the unsaid thing for most industries across the economy is that similar steps may happen with more positives in the offing. Continued focus on ‘Minimum Government, Maximum Governance’ will enhance ‘ease of doing business’, this government spending will provide a stimulus for GDP growth, and is laudable.”

Mr. Abhishek Jain COO - Satellite Developers Private Limited
Mr. Abhishek Jain COO – Satellite Developers Private Limited

Mr Abhishek Jain, Chief Operating Officer, Satellite Developers Private Limited

“The Union Budget 2021-22 continued the government’s focus on the affordable housing sector. The government’s decision to extend tax holiday for affordable housing projects by another year is a step in the positive direction to boost the sentiments among real estate players in the market and achieve the government’s vision of ‘Housing for All by 2022’ for India. This budget has focussed heavily on infrastructure that will indirectly lift the housing demand, especially in the Tier II & Tier III cities. Also, the Government’s continuous efforts to promote affordable housing will help the real estate sector business in a long way as we advance.”

Mr Ashok Mohanani, President - NAREDCO Maharashtra,
Mr Ashok Mohanani, President – NAREDCO Maharashtra,

Mr Ashok Mohanani, President – NAREDCO Maharashtra,

“The Government has put its best efforts to put the economy back on track after the adverse effects of Covid-19 pandemic that the entire country went through. It has focussed a lot on infrastructure in this budget. This will indirectly help boost the housing demand, especially in the Tier II & Tier III cities.

The Government’s decision to further infuse Rs. 20000 crore for public sector banks will help address liquidity issues to a large extent. The proposal to extend the Rs 1.5 lakh benefit on interest paid on affordable housing loans by one year to March 31, 2022, is an exceptional move that will boost the affordable housing segment and help achieve the Prime Minister’s vision of Housing for All. It will also ensure that more and more homebuyers get to avail of this benefit. The reduction in the tax burden on senior citizens above 75 years will push the senior-living projects.

The Government’s continuous efforts to promote ease of doing business and digitization will help the real estate sector business long in the future. As anticipated, it’s a very futuristic budget from the economy point of view. “

Dr Harsh Kumar Bhanwala, Executive Chairman, Capital India Finance Limited (CIFL)
Dr Harsh Kumar Bhanwala, Executive Chairman, Capital India Finance Limited (CIFL)

Dr Harsh Kumar Bhanwala, Executive Chairman, Capital India Finance Limited (CIFL)

The Atmanirbhar Bharat programme has opened up much-needed room for the financial institutions to lend easily for the MSME segment. The Finance Ministry’s fund of Rs 15,700 cr, which is 2x times higher than last year will help revive closed down units, and job losses as a separate line of liquidity would now be available. The introduction of a special framework for MSME litigation will also support small companies to overcome legal hurdles.


Small and medium scaleNBFCs at the forefront of the lending cycle will have better days ahead as the budget has prioritised growth. This would mean further augmentation of liquidity, and hence, we can expect more credit disbursal. The bad bank’s introduction would also provide a much-needed cushion to tackle NPAs and provide quick resolutions.

On Fintech’s

The allotment of Rs 1,500 cr to promote digital payments would help Tier II & Tier III cities better infrastructure. The Government’s proposal to reduce the margin money requirements for start-ups from 25% to 15% will further boost the country’s entrepreneurial spirit. Launching a world-class fintech institution would be a big confidence booster for the market participants, particularly for the bond market, that will also help to streamline debt securities.

Development Finance Institute

The proposal to set up a Development Finance Institution (DFI) with Rs 20,000 crore capital would certainly help the MSMEs get further credit support from the Government. This would in-turn catalyse financing the infrastructure projects such as national infrastructure pipeline am ambitious, a world-class project that would improve citizens’ quality of life.


The budget allocation for the affordable housing, overall infrastructure, will bring sustainable impact to these segments. Lending in the construction sector should become easy as recoveries would become better due to increased sales, especially in the non-metro cities. The announcement of Rs 1.10 lac crore to critical infrastructure areas like Railways, national highways and privatising of the Airports would ease the sector related issues, as lending is the key to address needs of the overall infrastructure sector.

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