There are a lot of expectations from Budget 2022 as people from various walks are pinning high hopes on decisions and announcements on various sectors. The Budget 2022 will be presented on 1st February 2022. There are opportunities in real estate that would enable faster economic recovery. Despite the pandemic induced-challenges, the sector that contributes 8% to the country’s GDP has acted resilient and home-buying is still the top priority for a great majority of people for end-use as well as for investment. The government is likely to focus on infrastructure and asset monetization in the Union Budget. The general expectation is that this budget will incentivize both the rental housing market and the affordable housing sector. Another measure that will help the recovery of the sector is a GST waiver on under-construction projects and raw materials like cement, etc. Different sectors have their expectations from the budget.
Real estate
Amongst some of the other initiatives the Finance Minister, the real estate sector would look out for a proposal to continue their push towards Affordable Housing. Several reforms must be undertaken to promote rental housing which indicates that a modern tenant law will be formulated. The government’s consistent efforts towards Housing for All by 2022 are very encouraging. The sector’s buoyancy is attributed to numerous factors like stable property prices, lucrative discounts by builders, and historic low home loan interest rates. The real estate sector affects 250 plus segments of other industries and it is also covered by 100+ regulatory laws. There are several areas that UnionBudget-2022 should address. The key expectations of the sector include;
Infrastructure
The infrastructure sector not only helped it in getting back to its feet through economic revival but also raised the hopes of growth. Besides providing jobs to thousands of people and creating long-term assets. The sector expects massive emphasis on infrastructure. While the ongoing flagship programs such as Gati Shakti, AMRUT, Smart City, Skill India, PMAY, etc., will need the continuous infusion of budgetary allocations, we also foresee the announcements of altogether new flagship programs on similar scales. The key expectations of the sector include;
Steel
Indian Steel Association (ISA), the industry body of steel manufacturers of the country, ahead of the Union Budget 2022-23, has recently submitted a memorandum in the form of a wish list to the government that calls for reduction as well as rationalization of various applicable duties and taxes along with policy measure that aims to boost the growth of the steel sector in FY 2022-23 and beyond. The central government is expected to continue with increasing capital outlay towards key infrastructure segments like roads and railways, in line with planned investments of Rs 111 lakh crore towards the projects covered under the NIP from FY20 to FY25. The government is also expected to provide clarity on the current status of the NIP and its Capex phasing over the next few years. The key expectations of the sector include;
Auto and manufacturing
These sectors expect a further boost to initiatives that will make compliance easier to improve the ease, cost and speed of doing business and fast implementation of the National Single Window Scheme (NSWS). The automotive sector, particularly the CV industry, hit a bit of a roller coaster with the new axle load mandate, graduation to BS-VI regulations, followed by the Covid19 jolt and lockdowns, the rising commodity prices, chip shortage impacting the supply chain in the last few quarters.
Once the budget is declared, let’s see whether the declaration meets the industry expectations!