Anil Kothuri, President & Head, Retail Finance, Edelweiss - Budget provides thrust to Housing and Infrastructure While it is a placeholder till a full budget is presented in February next year, the budget establishes the intent of the government to kickstart the economy and lays down the foundation for its economic agenda

These include the development of satellite cities, incentives for REITs, an increase in allocation for Rural Housing to the NHB and an increase in the tax exemption for interest paid on home loans.

With some concessional custom duty in raw material input of manufacturing sectors, is also appreciated. We look forward for reducing the fiscal deficit and achieving the growth as targeted by the new Government.

The REITS platform provides an attractive option to exit some investments and will give developers a new avenue to raise funds and conduct development activities in the country.

The proposal for setting up 100 smart cities at a cost of Rs 7060 crores is well planned by the government. This will have a tough competition for the developers to raise the bar for the execution in the Industry.

Higher budgetary allocation & duty rationalisation are positive for the clean energy sector. The announcement of ultra mega solar projects in four states is expected to facilitate a large sized solar capacity addition in the country & would also encourage domestic manufacturing of solar projects.

Specific measures relating to reduction in area for FDI and REIT’s will increase liquidity in the sector and as such reduce the dependence on the banking system. With the current incentives in the budget,

To boost the manufacturing sector, especially the SME sector, the 15% investment allowance has been extended to investment in plant and machinery of Rs. 25 crore if made within the next 3 years.

The relief provided on individual income tax and interest on housing loans is very significant for the budget homes sector, since these measures have greatest pertinence to the more financially sensitive home buyers.