Budget to Boost Construction and Manufacturing Sectors
With the National Democratic Alliance (NDA) aiming to take the economy to a sustained growth rate of 7-8% within the next couple of years and increase job opportunities, Finance Minister Arun Jaitley announced new measures to improve roads and boost construction. The road sector was the focus during the previous NDA government as well. Arun Jaitley proposed to assign Rs. 37,880 crore for the National Highways Authority of India and state roads, which includes Rs. 3,000 crore for the North Eastern states.
“A modern nation needs multiple sources of transport. A country of the size of India must have a transport network that can ensure faster travel across cities which are geographically distant. This will also improve the supply chain in transporting goods across cities. We will initiate work on select expressways in parallel to the development of the industrial corridors,” said Arun Jaitley in his budget speech.
The budget proposed to hike the limit of Foreign Direct Investment (FDI) in defence manufacturing and insurance to 49%, which means an increase in local manufacturing of defence equipment and help the money deprived insurance sector, aiding economic growth and job creation.
The budget has also proposed to provide for civic infrastructure in rural areas of the nation. Arun Jaitley said, “Shyama Prasad Mukherji Rurban Mission will be launched to deliver integrated project based infrastructure in the rural areas, which will also include development of economic activities and skill development. The preferred mode of delivery would be through PPPs while using various scheme funds for financing.”
In accordance with PM Narendra Modi’s campaign promise to bring up 100 ‘smart cities’, the budget proposed to develop satellite towns of larger cities and modernize existing mid-sized cities, for which Arun Jaitley allocated Rs. 7,060 crore in the current fiscal.
Source: LiveMint & The Wall Street Journal
Budget 2014, Budget 2014 Real estate, Expectation on Budget, expectations from modi government, finance budget 2014-15, hopes of Realty sector from Budget 2014, National Democratic Alliance, real estate expectation on Budget
