Industry hails Budget 2024-25 as a game-changer for economic growth and reforms

New Delhi: The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman on Tuesday, has garnered positive reactions from industry leaders who highlight its comprehensive approach to fostering economic growth, ease of doing business, and structural reforms.
Sanjiv Puri, President of the Confederation of Indian Industry (CII), lauded the budget for its wide-ranging investments across multiple sectors. He emphasized the budget's focus on simplifying business processes and legislative frameworks.
Puri said, "It has brought in a lot of investments into a number of sectors right from agriculture, and manufacturing to services. A lot of focus is on ease of doing business, and a lot of areas are getting simplified. The Finance Minister also spoke about a comprehensive review of Tax legislation, to simplify it."
"A very strong signal for greater ease of doing business and a very strong signal to bring in reform at the state level also. And very importantly the next generation reforms, look at all the factor costs, I think these are some of the very important, very strong statements, very strong announcements that are made," added Puri.
Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa, highlighted the significance of digitizing land records.
He said, "One of the big things was the digitization of land, she (Nirmala Sitharaman) talked about Aadhar for land and land is an extremely important ingredient not only for development for housing but also manufacturing. That will make a big difference because if it is digitised it reduces litigation."
He added, "If you look at our courts, a huge amount of litigation is land disputes. It will also bring in investments, it will also increase taxation collection for the government."," noted Magazine.
Niranjan Hiranandani, Chairman of Hiranandani and NAREDCO, expressed enthusiasm for the budget's focus on fiscal incentives and structural reforms aimed at employment-centric sectors. He emphasized the government's strategic emphasis on youth employability through private sector internships, salary support, and CSR-funded training.
He said, "The monumental allocation of Rs 10 lakh crore under the PMAY Urban Scheme, aiming for 3 crore houses, alongside the focus on rental housing through dormitories in industrial parks via the PPP model, and the sanctioning of 12 new industrial parks, underscores a robust vision for urban development."
"With sustained infrastructure impetus, reflected in the Rs 11.11 lakh crore Capex allocation, we anticipate a significant boost in affordable rental housing for industrial labourers," Hiranandani added.
The focus on sustainable development through solar and renewable energy, water and solid waste management aligns with the goal of climate-resilient real estate development.
Hiranandani noted the reduction in long-term capital gain tax to 12.5 per cent without indexation benefits and the alignment of the holding period for long-term capital gains with that of equity shares, reducing it to 24 months, as significant steps to boost investment and enhance competitiveness within the sector.
He said, "The emphasis on encouraging state governments to reduce stamp duty and other development premiums is a decisive step. This will not only bolster urban housing growth but also make affordable housing more accessible, optimize development costs, and invigorate the demand curve."
He added, "The implementation of redevelopment and transit-oriented development schemes merits careful attention, as they are pivotal for driving urban growth, generating employment, attracting investments, and boosting economic growth."
Shishir Baijal, Chairman and Managing Director, Knight Frank India said the Budget shows the government was committed to infrastructure and social development.
"We welcome the announcements presented today in the Union Budget by the Honourable Finance Minister. The Union Budget for FY 2024-25 has further strengthened the government's commitment towards long-term social and infrastructure development. The 11.1 lakh crore outlay for capital expenditure, which has risen from 3.3% of GDP in FY 2023-24 to 3.4% in FY 2024-25, will continue to support the agenda for the development of railways, roads, and overall logistics infrastructure in the country. The 12 industrial park projects identified under the National Industrial Corridor Development Program are massive undertakings with the potential to grow economic hubs and boost real estate development along their alignment," he said.
The Union Budget 2024 presented in Parliament on Tuesday was Finance Minister Nirmala Sitharaman's seventh consecutive budget.