J C Sharma, Vice Chairman & Managing Director, Sobha Ltd on the budget

We welcome the forward-looking Union Budget 2022 outlining the vision for growth for the next 25 years. The announcements made by the Hon’ble Finance Minister today with focus on urbanization, infrastructure and sustainability reflects the government’s positive intent to put the Indian Economy on the path of growth and stability. This is commendable.

We see this Budget as a continuation of past few years’ Budget which is critical for the stability of policies and sustained growth. It is also admirable to note that this Budget reflects immense clarity of thought and purpose as it provides impetus for growth along four key areas of priority: PM GatiShakti; Inclusive development; Productivity Enhancement and Investment, Sunrise Opportunities, Energy Transition, and Climate Action; and Financing of Investments.

We are certain that this approach is not only futuristic and inclusive but will help our youth, women, farmers and in bringing an overall growth of the economy which will augur well for realty sector as well. Mr. J C Sharma, Vice Chairman & Managing Director, SOBHA Ltd. said, “We will be the large beneficiaries with the implementation of this Budget. When the economy grows at around 8-9% with the kind of focus this Budget has on growth, employment generation and containing fiscal deficit – these are bound to contribute to the growth of the real estate sector as well.

Growth in Housing will be the natural fall out of infrastructural development in the country from its importance point of view and from long term wealth creation point of view.” He further said, “The proposal to complete 80 lakh homes in 2022-23 by allocating Rs. 48,000 crore under Pradhan Mantri Awas Yojana (PMAY) is a significant step to promote affordable housing for economically weaker & middle class people in urban areas.” Furthermore, he added, “The Budget proposal to form a high-level committee to refine urban development is reflective of the government’s long-term planning towards creating urban centers of excellence which can develop as thriving spaces for sustainable living and offering economic opportunities for our youth and women. Such visionary and long-term goal is indeed an example of high level of urban sector policies, capacity building, governance and planning and implementation that is in the offing. This is very laudable and will augur well for the realty sector.”

Despite some of these laudable steps that have been announced in today’s Budget we must not negate the challenges that the pandemic has thrown up and still exist at large. Some of the steps like reintroduction of input tax credit in GST, deduction of interest on home loan for the first-time home buyers or at least the interest subsidy should have been increased from Rs. 2 Lakhs to Rs. 5 Lakhs, granting infrastructure status to the real estate sector, and single window clearance to fast-track approvals would have gone a long way to give the much-needed fillip to the national economy speedily.