“The first Budget of the NDA 2019 balances the objective of boosting growth while adhering to fiscal prudence in the medium term. The focus on next-generation infrastructure to provide Ease of Living shows the modernization that the country has well adapted to and thereby will boost the real estate sector too. The steps to provide impetus to the housing sector would have a multiplier effect on GDP growth given the sector’s significant economic linkages, a deduction of Rs 150000 on interest on loans borrowed under affordable housing will help boost the demand of Housing for All by 2022. Also, the allocation of Rs 100 lakh crore investments for infrastructure over 5 years is also a welcome move to put India in a high trajectory that will make it a $5trillion economy by 2024-2025.
On the outline of the banking sector, the government keeps up a fine balance between ensuring liquidity and enhancing scrutiny. Placing housing finance corporation over the circle of the RBI and incentives such as credit guarantees for NBFCs will grant relief to this sector. Overall, the Budget is likely to boost domestic demand and support India’s economic outlook”.