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INFRASTRUCTURE & URBAN DEVELOPMENT

Announcements

* Urban challenge fund of INR 1 lakh crore for cities to be developed as growth hubs. The fund will finance 25% of the cost of bankable projects, with an allocation of INR 10,000 crore for 2025-26.

* Each infrastructure-related ministry to come up with a 3-year plan to be implemented in PPP mode. The outlay of INR 1.5 lakh crore is proposed for 50-year interest-free loans.

* UDAN scheme will be expanded to enhance regional connectivity to 120 new destinations .

* National Geospatial Mission to develop foundational geospatial infrastructure and data.

Impact:

* Transformation of cities into economic growth hubs with emphasis on high-quality urbanization. Infrastructure development to have multiplier effect on real estate growth and create equitable real estate hotspots spread across the country.

* Infrastructure boost to bolster real estate activity in tier II and III cities.

* Facilitating modernization of land records, urban planning, and design of infrastructure projects.

HOUSING

Announcements:

* Establishment of SWAMIH II fund with allocation of INR 15,000 crore to support completion of another 1 lakh units.

* Simplification in annual value of the self-occupied property and proposal to allow the benefit of two self-occupied properties without any condition.

* Senior living: TDS deduction limit for senior citizens increased from INR 50,000 to INR 1,00,000 (in case of interest other than interest on securities). Additionally, they will be allowed tax-free withdrawals from NSS accounts.

Impact:

* Extension of SWAMIH fund will aid stressed project completion, boost liquidity and spur home buying sentiment.

* Reduction in compliance burden on taxpayers.

* Will increase liquidity in the hands of senior citizens and provide them with sufficient flexibility to invest in purpose-built senior housing, potentially accelerating growth in senior living segment.

INDUSTRIAL & L OGISTICS

Announcements: 

* The government will set up a Manufacturing mission to further Make In India programme and support clean-tech manufacturing.

* Rationalization of customs rate structures for industrial goods by removal of certain custom tariff rates.

* Support to footwear & leather, food processing and toy sectors.

* Setting up of BharatTradeNet as platform for trade documentation.

Impact:

* Boost to manufacturing capabilities, enhancement in domestic production and reduction in dependency on imports.

* Impetus to Grade A industrial and warehouse leasing and encouragement to labor-intensive sectors.

* Clean technology manufacturing will promote sustainable development.

START-UPS & MSMEs

Announcements:

* Alternate Investment Fund (AIFs) for start-ups to receive fresh contribution of INR 10,000 crore, in addition to existing government contribution of INR 10,000 crore.

* Extension of benefit provided under Section 80-IAC to startups for another period of five years till 2030.

* Credit guarantee cover for micro-enterprises will be enhanced from INR 5 crore to INR 10 crore and for startups, from INR 10 crore to INR 20 crore with moderation in guarantee fee for loans in 27 focus sectors.

* The investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively.

* Customized credit cards with INR 5 lakh limit for micro enterprises registered on Udyam portal.

Impact:

* The new measures significantly enhance access to capital and credit support for start-ups and MSMEs, thereby boosting innovation and domestic manufacturing capabilities.

* Start-ups can take up incremental Grade A office space, particularly flex space across major office markets of the country.

POWER & TECHNOLOGY

Announcements:

* Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of INR 20,000 crore

* Incentivization of electricity distribution reforms and augmentation of intra-state transmission capacity.

* Gyan Bharatam Mission and National Digital Repository of Indian knowledge systems for knowledge sharing

Impact:

* Enhancements in energy infrastructure and improvements in electricity distribution can provide reliable and cost-effective power supply.

* Power infra upgradation and heightened technology usage can attract significant investments particularly in data centers driving growth and innovation

EV MANUFACTURING

Announcements:

* Exemption on custom duty for 35 additional capital goods for Electric Vehicle (EV) manufacturing. • Removal of customs duty on critical minerals for manufacturing of EV batteries like lithium, cobalt, and nickel.

Impact:

* Improvement in domestic battery production capabilities, enhanced cost competitiveness for EV adoption and manufacturing.

* EV players including automobile manufacturers, ancillary product & battery manufacturers are set to complement the demand for Grade A warehouses.

INVESTMENTS

* FDI in insurance increased from 74% to 100%.

* To encourage funding from sovereign wealth and pension funds in the infrastructure sector, the investment timeline has been extended till 31st March 2030.

* An Investment Friendliness Index of states to be launched.

Impact:

* With more foreign capital flowing, there can be greater funding availability for real estate projects across residential & commercial segments and infrastructure developments.

TOURISM

Announcements:

* Development of 50 tourist destinations will be carried out in partnership with state governments, providing Mudra loans for homestays.

* Hotels will also be included in the harmonised scheme for enhanced tourism infrastructure.

* Medical tourism and ‘Heal in India’ to be promoted in partnership with private sector.

Impact:

* Spur demand in hospitality segment and boost real estate investments through enhanced connectivity and tourism infrastructure.

GCCs AND EXPORTORIENTED BUSINESSES

Announcements:

* A national framework will be formulated as guidance to states for promoting Global Capability Centres (GCCs).

* Export Promotion Mission to facilitate easy access to export credit.

* Support to be given to MSMEs to tackle nontariff barriers in exports.

Impact:

* Catalyze GCC expansion into tier 2 cities driven by talent availability & infrastructure upgradation and boost commercial real estate in smaller cities.

* Streamline access to export credit and boost India’s export competitiveness.

EDUCATION & SKILL DEVELOPMENT

Announcements:

* 50,000 Atal Tinkering Labs for fostering scientific temper among young minds.

* INR 500 crore for Centre of Excellence in Artificial Intelligence.

* Infrastructure upgradation in the 5 newer IITs to increase enrollment by 6,500 students.

* No TCS on remittance under Liberalized Remittance Scheme (LRS) for education loans.

Impact:

* Boost skill development, AI literacy and strengthening of talent pool for a knowledgedriven economy.

* Enhanced infrastructure at premier institutes will boost higher education access, while skill development will be beneficial in primary, secondary and tertiary education.

TAXATION

Announcements:

* Revised slabs under new tax regime (INR)*: 0- 4L- Nil, 4-8L- 5%, 8-12L-10%, 12-16L-15%, 16- 20L-20%, 20-24L-25%, >24 lakhs 30% .

* No income tax for up to INR 12 lakhs annual under new regime

* Increase in annual limit of INR 2.4 lakh for TDS on rent to INR 6 lakh in case of renting for non-residential purposes.

* TCS to be omitted in goods’ sale transactions where both TDS & TCS are currently levied.

Impact:

* The announcement will drive consumption across various sectors, including real estate, through increased disposable income.

* Demand in affordable and middle-income housing segments is likely to gain traction, especially within the salaried class

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