Shounak Gadre, Partner at Bain & Company, has shared his insights on the key measures set to accelerate growth in the Infrastructure and Real Estate sectors

Shounak Gadre - Partner at Bain & Company:

"The Infrastructure and Real Estate sectors will expect accelerated growth after today’s budget. The Urban Challenge Fund of ?1 lakh crore with a focus on ‘Cities as Growth Hubs,’ ‘Creative Redevelopment of Cities,’ and ‘Water & Sanitation,’ along with the Swamih Fund 2 of ?15,000 crore for expeditious completion of one lakh dwelling units through blended finance, will further boost metros, tier 1, and tier 2 cities to emerge as growth and consumption centers. Secondly, the outlay of ~?1.5 lakh crore; 50-year interest-free loans to support states for capital expenditure; the Maritime Development Fund with a corpus of ?25,000 crore; and investments in UDAN to increase connectivity will spur growth for EPC and infrastructure players who participate in nation-building. Last but not least, the reduction of tax slabs and rationalization of TDS/TCS complement these efforts in infrastructure development by driving higher disposable income for the salaried class. Overall, the budget achieves a good balance of driving growth in a complementary manner through infrastructure investments and encouraging spending by private enterprises."
Rahul Mehrotra - MD & CEO, RHDFCL 

"The budget’s focus on affordable housing is a welcome move that will accelerate homeownership aspirations for millions of Indians. The extension of interest subsidies, tax incentives for developers, and increased allocation to housing schemes will make homes more accessible to the middle- and lower-income segments. Strengthening financial inclusion through these initiatives will not only boost the real estate sector but also have a positive cascading effect on employment and urban development."