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Below the Perspective on Union Budget 2025 - 26 by Mr. Shishir Baijal – Chairman & Managing Director, Knight Frank India

“The Union Budget 2025 -26 was presented in the backdrop of a slower GDP growth, higher than tolerable inflation rates and historical lows of the Indian Rupee. The issue of reducing private consumption was looming large which could have wider ramifications if not addressed early. With that the government focused on providing disposable income and boost consumption. The highlight of this budget is clearly the reduction in the Income Tax burden on the middle-class which will bear no tax up to an income of INR 12 Lakh fundamentally increasing disposable incomes and boosting consumption.

 For the housing sector, the INR 15,000 cr allocation toward the SWAMIH Fund will support the delivery of stressed projects. The investor friendly approach of the government is also apparent in the move to remove the erstwhile tax on deemed rent for two self-occupied properties compared to one earlier.

 The INR 11.21 lakh cr outlay for capital expenditure which has risen from INR 11.11 lakh cr in FY 2024 - 25 will continue to support the agenda for infrastructure development of railway, roads and overall logistics infrastructure of the country. The increase in the credit outlay for PPP projects from INR 1.3 to INR 1.5 lakh cr will boost the pace and delivery of infrastructure development across the country.

 However, some crucial aspects like sops for affordable housing and a national policy towards rental housing that would have given a fillip the programme of housing for all were not addressed which we hope would be taken up subsequently."

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