Key Quotes on India’s Post-Budget 2024 Reaction

The 2024-25 budget presents a promising roadmap for India’s growth, with a strong focus on infrastructure development in both rural and urban areas. The record-breaking allocation of ₹11,11,111 crore for capital expenditure (3.4% of GDP) signifies a strong commitment from the central government in this area. The budget also encourages private sector participation in infrastructure development. Initiatives like viability gap funding and enabling policies create a supportive environment for companies to contribute their expertise and resources in the infrastructure, housing, and building materials sectors. This renewed emphasis on infrastructure, particularly in rural areas through PMGSY Phase IV, will accelerate the infrastructure works in these regions. We believe that the improved connectivity in rural areas, connecting 25,000 habitations, will create a significant demand for roads, bridges, and power grids etc. This will drive activity for construction companies and create a ripple effect throughout the building materials industry, with increased demand for cement, steel, and other essential materials. Furthermore, improved rural connectivity will act as a catalyst for housing demand. Easier access to markets and services will incentivize people to build new homes or renovate existing ones, leading to increased demand for housing materials and construction services.

Beyond this, the investment of ₹10 lakh crore to address the housing needs of the urban poor and middle class under PM Awas Yojna Urban 2.0 will spur growth in the real estate industry and the demand for construction materials.

By focusing on overall infrastructure development, this year’s budget presents a strategic opportunity for India’s economic growth and strong steps to realise the dream of a developed India @ 2047.