The Union Budget 2022-23 aims to provide a blueprint for India over the next 25 years - Colliers International
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Budget 2022-23: Impact Analysis
The Union Budget 2022-23 aims to provide a blueprint for India over the next 25 years. The government is building a future-proof economy and took strides towards digitization and climate change. Ease of doing business is high on government’s priority, with plans of launching ‘Ease of Doing Business 2.0.’
From a real estate perspective, the budget continues to commit towards affordable housing. Increased infrastructure spending on urban transport, highways and multi-modal logistics can modernize and spur investments into logistics. However, incentives to homebuyers especially to the lower and mid income groups were largely missed in the budget.
Infrastructure & Urban Development
Announcement:
* INR20,000 crore allocated for expanding National highway network by 25,000 kms in FY23
* Modernization of building bye laws, town planning scheme
Impact
Rejuvenation of cities and increased opportunity for developers
Housing
Announcement:
* INR48,000 crore allocated for FY2022-23 under affordable housing scheme to build 80 lakh houses in rural and Urban India
Impact
* Improving affordable housing stock in rural and urban areas
Transparency
Announcement:
* Ease of doing business 2.0 to be launched
* Digitization of land records
* Scope of single-window portal that was established in 2018 to be expanded for all green clearances
* ‘One nation one registration’ for uniform and anywhere registration of deeds
Impact
* Enhancing business environment, removing red tapism and attracting foreign capital
Industrial and Logistics
Announcement:
* 100 PM Gati Shakti cargo terminals to be developed for Multi modal logistics
* 4 Multi-Modal Logistic Parks (MMLP) contracts to be awarded on PPP basis
* INR19,500 crore allocated for manufacturing of solar PVs and high efficiency modules
Impact
Enhancing supply chain efficiency and boosting warehousing and logistics facilities
Data Centers
Announcement:
* Data Centers to be given infrastructure status
Impact
* Enabling data centers access cheaper financing; helping India become a data center hub
Start-ups & MSMEs
Announcement:
* To avail of tax benefits, the period of incorporation for start-ups extended by a year to March 2023
* Extension of ECLGS** scheme till March 2023
Impact
* Incentivizing start-ups and encouraging investments in low-tax environment; Big boost to MSMEs
Special Economic Zones (SEZ)
Announcement:
* SEZ Act to be repealed and replaced with a new law
Impact
* Making export-oriented parks attractive for investments
Electric Vehicles (EV)
Announcement:
* Battery swapping policy and interoperability standards for EV promotion
* Special mobility zones for electric vehicles to be developed
* Expanding charging network
Impact
* Addressing the space constraints in urban areas for setting up charging stations would enable faster EV adoption
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