Expressing expectations for affordable housing Anuj Puri, Chairman - ANAROCK Group said, “As the nation awaits the Union Budget of the Modi 3.0 government, there is no doubt that the stakes for the languishing affordable housing sector are very high. In fact, it is hoped that Budget 2025-26 will be a resuscitating turning point for it. Any substantial announcement for the affordable housing segment in the upcoming Union Budget can strengthen the trend and give affordable housing a seriously needed leg-up. Even if such measures don't initiate a full-blown revival, they can at least improve this segment's overall prospects. Finally, a healthy housing market caters to a broad range of buyers and doesn't favour just one segment.”
For infrastructure Suresh Kumar R, Managing Director, Allcargo Terminals Limited shared, “We expect continued thrust on capital expenditure for physical and digital infrastructure and emphasis on port infrastructure development for attaining 10,000 MTPA port capacity by 2047. Continued investment to enhance transport connectivity, rail corridors, incentives for adoption of EV trucks and fiscal benefits for developing EV infrastructure will foster sustainable multimodal connectivity. To enhance EXIM trade, we expect the budget to outline policies to leverage existing assets and infra -structure in and around ports.''
“For the housing finance sector, the upcoming budget should focus on reviewing and modifying important regulations that take into account the current state of the housing market. With property prices having risen in recent years, the current GST concession limit for affordable housing, which is set at ?45 lakh, should be revised to ?60-65 lakh. Similarly, the RBI's priority sector definition for housing loans should be updated to reflect this new limit. Given the inflation over the past decade, the definitions for EWS (Economically Weaker Sections) and LIG (Lower Income Groups) also need to be updated. The existing ?2 lakh income tax deduction for housing loan interest should be increased to ?4 lakh. Additionally, to support first-time homeowners during the waiting period for possession, this refund should apply to residences that are still under construction, for a maximum of two years. Finally, the notional rent tax on second homes should be exempted when the property is purchased or constructed at a parental place, remains vacant, and does not generate rental income. Furthermore, increasing the corpus for affordable housing funds will ensure refinancing to Housing Finance Companies (HFCs) at concessional rates, helping to expand affordable housing availability across the country,” said Rishi Anand, MD & CEO, Aadhar Housing Finance Ltd.
Sharing expectations of the building products segment, Manoj Tulsian, CEO and Joint Managing Director, Greenply Industries Ltd. stated, “As we look towards Union Budget 2025, we expect strong focus on sustainable economic growth driven by domestic consumption, green manufacturing incentives, and skill development. Revising the income-tax rebate threshold can enhance disposable income, improving demand in sectors like housing and interiors, which are key to economic expansion. At the same time, targeted tax benefits for sustainable manufacturing—such as incentives for green building materials and responsible forestry practices—would not only support industrial growth but also reinforce India’s climate commitments. Equally critical is investment in skill development, particularly in carpentry and allied trades, to bridge the workforce gap in India’s expanding furniture and infrastructure industries.”
Presenting expectation on the technology ecosystem, Praveen Grover, Vice President and Managing Director, AHEAD said, “We hope for incentives that encourage investment in carbon-neutral data centres and hybrid cloud solutions, such as capital subsidies and accelerated depreciation benefits for green technologies. AHEAD also advocates for a focused allocation to AI-driven digital innovation, including a national AI fund that supports research in predictive analytics and generative AI. On the talent side, budgetary provisions to fund reskilling initiatives in partnership with IT service providers could ensure our workforce remains future-ready. Additionally, streamlining compliance processes for cross-border IT service providers would enhance ease of doing business and attract global enterprises to invest in India. This budget must address the growing complexity of the digital economy with bold, forward-looking measures.”
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