Ramesh Nair, CEO, India & MD, Market Development, Asia, Colliers on the recent budget

The Union Budget 2022-23 is forward looking and focuses on a long-term plan for the country with digitization, urban development, and sustainability at its core. For the real estate sector, the budget placed an outlay of INR 48,000 crores under the Pradhan Mantri Awas Yojana, and construction of 80 lakh homes will facilitate affordable housing. This, yet again, showcases the government’s commitment on building affordable housing stock. However, we would have liked if there was more push on the demand side, such as extension & expansion of the credit linked subsidy scheme.

The Budget made several announcements to spur growth of the logistics sector in the country. The government repealed about 1,490 union laws in recent years, paving the way for to improve ease of doing business.

The government also plans to launch ‘Ease of Doing Business 2.0.’ This should include more dynamic aspects and make India a more investment friendly destination. The budget announced a few laudable incentives for startups. The time extension provided to claim tax benefits will provide a breather for start-ups and encourage more start-ups in India.

We look forward to the announcement on the replacement of the Special Economic Zone Act with a new legislation. This has the potential to make export-led parks attractive for investments. The new benefits will also trickle down to technology companies who export services and have a positive bearing on commercial office real estate.