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    Budget 2022 Expectations: High hopes pinned on Modi government, FM Nirmala Sitharaman – Check who wants what

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    The Union Budget 2022-23 is all set to be presented by the Union Finance & Corporate Affairs Minister Nirmala Sitharaman on 1st February, 2022 in Paperless form. This is the 4th Budget of the PM Narendra Modi-led NDA government in its second tenure. The Budget 2022 will be presented around 11 am on 1st February 2022.

    Budget 2022 Expectations

    There are a lot of expectations from Budget 2022 as people from various walks are pinning high hopes on the Modi government’s decisions and announcements on various sectors.

    Here are all the updates on Budget 2022 Expectations:-

    Union budget 2022-23: National Retail Policy Needs A Strong Consideration In Union Budget (By Ravi Saxena MD Wonderchef)

    This year’s budget must focus on policy alignment for the retail sector which is reeling due to the pandemic. The long-standing demand of the National Retail Trade Policy needs to be addressed in order to provide a framework and structural financial support to the sector. Inclusion of retail under the Micro, Small and Medium Enterprises will open access to bank loans under priority sector schemes. The government may also come up with a clear e-commerce policy to ensure regulation, data protection and anti-competitive practices in the sector.

    Above all, impetus must be given to boosting spending by putting more disposable income in the hands of the public as it will help retail and other sectors in overcoming the pandemic brunt. Lastly, if there is a time to turn the economy around with infrastructure spending, it is now.

    Union Budget 2022-23: Fintech Sector Expectation (By Rohit Gajbhiye, CEO, Founder- Financepeer)

    The fintech sector in India has come a long way despite the pandemic outbreak. However, it still reels under various challenges which should be addressed immediately so as to increase the penetration and help the populace. Focus in Budget 2022 should be on increasing the investment in the fintech segment to ensure a wider outreach along with zeroing down on cyber frauds. By controlling the cyber frauds, we will be able to boost consumer sentiment which will eventually scale up the industry growth.

    Apart from this, we expect that the government should lower down the GST rates on financial services and bring in more tax reforms so that fintech becomes a level playing field for all.

    Union Budget 2022-23: Real Estate Sector Expectation (Mr. Harpreet Singh Hora, Group Director, Realistic Realtors)
    The real estate sector is seeing the year 2022-23 as the year to make up for the losses of the previous two years. Reduction in the GST and higher tax reliefs for the home buyers would be extremely helpful in attracting more homebuyers. Input tax credits for the developers and the reduction in the stamp duty can further fuel the demand for housing. The sector expects the budget to broaden the scope of affordable housing and include homes up from 45 lakhs to 75 lakhs in the section. By expanding the scope of affordable housing, the budget can enable more buyers to take advantage of the schemes for the sector and attract more buyers. The union budget 2022 can provide the launching platform for the real estate sector itching to open its wings after a sluggish period of 2 years.

    Union Budget 2022-23: Healthcare Industry Expectation ( Mr. Anurag Khosla CEO, vHealth by Aetna)
    In the last two budgets the Indian Government paved the way for digital healthcare in India, which I believe can dramatically improve patient experience and allow easy access to holistic and personalised care. This Union Budget 2022, I expect the Government to continue focusing on building a robust health infrastructure that promotes easy access to quality healthcare to the remotest corners of the country.
    I hope this budget encourages innovation & research in phygital healthcare delivery that creates a harmonious ecosystem between physical & digital healthcare services. Encouraging investment in healthtech & telehealth can greatly improve accessibility, quality & cost of healthcare in India. Further complemented by fast tracking NDHM & related schemes, can make India the next global healthcare hub

    Union Budget 2022-23: Women Entrepreneur Expectations ( Meeta Nagpal Founder, Musical Dreams)

    The budget 2022 is coming at a point when the economy has started showing signs of recovery. After a decline in the female participation in business, thanks to the efforts of the current government, it started increasing gradually. Although the pandemic impacted almost every sector of the economy, the female workforce was much more severely affected. In the upcoming budget, the female workforce, especially female entrepreneurs, are expecting the government to have some extra measures to support them. Women entrepreneurs are expecting the budget to have provisions with extra tax benefits, subsidies and interest free loans. Setting-up incubation centers for women-led-businesses would be a significant step in promoting women entrepreneurs and encouraging more women to enter business. The Union budget should also have measures for skill development for women and parity in salaries for female workforce. 

    Union Budget 2022-23: Infrastructure Sector Expectation (By Pradeep Misra, CMD-REPL)

    Budget 2022 holds the key for the infrastructure sector as it has suffered the most during the pandemic. The sector will be eyeing a slew of measures from the government so that sentiments of the investors as well as the players.
    Some of the key demands of the sector that should be addressed on a priority basis are clarity on asset monetisation, easing norms for fundraising, robust expenditure on boosting the education, health and export infrastructure and incentivising the use of technology in infrastructure development.
    All these factors will act as a catalyst for the infrastructure sector as they will not only help in infusing the liquidity but will also attract investments.

    Union Budget 2022-23: MSMEs Sector Expectation ( Mr. Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital)

    Union Budget 2022-23 is highly crucial to align Indian economy’s growth trajectory. It is essential that the Hon’ble Finance Minister announces effective measures to enable speedy recovery and growth of the MSMEs, considering the sector’s significant contribution to the economy. It is encouraging to see Government’s support for the MSME sector in last 12-15 months and we believe the efforts will only become more prominent in the time to come.

    In past few years, operationally nimble and technologically oriented NBFCs and Fintechs have deepened the credit penetration to the underserved regions of the country. Hence, in the upcoming budget, policymakers should provide due consideration to boost liquidity support to the NBFCs as well as encourage frameworks like co-lending, which will greatly boost the reach of financial institutions and progress in the financial inclusion imperative. EASE 4.0 talks about Co – Lending between Banks and NBFC as a means to increase the credit penetration, however the treatment of Tax Deduction at Source (TDS) treatment for NBFC and Banks are different and that is proving to be a major operational challenge to accelerate credit. It is expected that TDS rules would be harmonised between Banks and NBFCs.

    Union Budget 2022-23: Real Estate Sector Expectation ( Mr. Nitin Gupta, President- Sales, Marketing, and CRM (Head) at Mantra Properties and Developers)

    This year’s budget is expected to meet many expectations. Especially while the entire economy is still recovering from the pandemic, the first that comes to mind will be, raising the tax exemption threshold, which will lead to more robust property investments; this is expected as part of the infrastructure focus. These benchmarks can be accomplished by extending the exemption limits under section 80 (C) of the Income Tax Act of 1961 or establishing separate provisions for principal repayments on house loans. Another expectation will be to reduce GST rates and registration Tax, which usually forms a significant part of property cost, making it an expensive affair. The price of raw materials has also increased lately, hence lowering GST rates will be a great relief for the developer fraternity.   A successive requirement in the budget will be to provide a better tax rebate under section 24 (B), as it is necessary to increase the home loan interest deduction from a bracket of Rs 2 lakhs to Rs 4 lakhs. This step will incentivize home buyers’ savings and play a significant role for buyers in making quick decisions towards buying a home. In my opinion, realtors have made solid requests for tangible infrastructure status for the industry. This project will adequately support the industry’s build-up of liquidity, resulting in enhanced decision-making power on supply-side costing.

    Expectations from the upcoming budget (Akash Sinha, Co-Founder & CEO, Cashfree Payments)

    The upcoming Union Budget holds high significance, as the Indian economy takes strides towards its complete recovery and growth post the pandemic. This imperative will be greatly supported by enhanced financial inclusion and digitalization which makes it crucial that appropriate measures are announced in this regard. It is heartening to see the Government’s recognition of fintechs’ ability to reach out to the unserved and underserved sections of the country, as evident from multiple initiatives in recent times. To further scale financial inclusion, it is essential that the government’s support is directed towards boosting digital infrastructure and innovation. Additionally, policy and regulatory efforts should be aimed at creating a favorable investment environment. While ensuring an appropriate degree of regulation, easing the investments in unlisted private businesses, especially in non-metro cities is crucial for convenient capital flow to technology start-ups towards their healthy growth. In the same respect, reducing the entry limits for Alternative Investment Funds (AIFs) and syndicates, aligning with the Government’s allocation to priority sectors, will ensure fund infusion to businesses.

    Union Budget 2022-23: Real Estate Sector Expectation (Mr. Sandeep Runwal – President, NAREDCO Maharashtra and Managing Director, Runwal Group)

    Real estate being the second-highest employment generator and contributing more than 8 percent to the economy, the expectations from the 2022-23 budget are high and the industry is awaiting big announcements that will alter the future of the real estate sector.
    The Central and State governments rolled out several reforms and incentives during the past year to revive the economy from the ill effects of the pandemic.
    The Government will continue to put in its sincere efforts in pushing affordable housing. The cap of Rs. 2 lakh per annum against interest rate deduction under section 24(b) of the Act needs to be hiked to at least Rs. 5 lakh along with removing the 45 lakh cap from affordable housing, which will boost the affordable and mid-segment housing in a big way.
    We also expect the government to continue promoting the affordable rental housing schemes by announcing tax reliefs for rental housing projects, which will fast track the pace of investments in these schemes. The Government’s commitment to boost both affordable and rental housing will help achieve their overall goal of Housing for All. We expect the Government to introduce tax sops for first-time homebuyers and look forward to re-introducing GST with an input tax credit on under-construction properties that will generate demand among homebuyers. There is a specific need for tax relief to spur significant real estate growth, along with single window clearance and lowering of home loan interest rates that will definitely go a long way in improving the market sentiments. We also urge the Government to reintroduce subvention schemes, helping the homebuyers to align their payments and encourage them to take a decision on home buying.
    The quantum of the SWAMIH stress fund needs to be enhanced along with strengthening the financing institutions to generate adequate liquidity and help the completion of stuck realty projects.
    In addition, the ‘industry status’ for real estate has been the long-standing demand by the sector; we anticipate that the Government can address this concern too.
    Overall, the industry expects the Government to take substantial measures to strengthen the real estate sector as well as the entire economy, by addressing critical issues, ensuring job creation, and sustaining growth.

    Union Budget 2022-23: Real Estate Sector Expectation (Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Hon. Secretary, CREDAI MCHI)

    The sector is seeing a strong recovery from the pandemic crisis. Residential sales in the top 8 cities have bounced back to near pre-COVID levels. While the real estate sector is looking at a robust housing demand revival in 2022. The developers expect the Union Budget 2022 to play a supportive and enabling role.
    The upcoming budget shall bring a lot of hope to the real estate sector. The budget shall offer the much-needed push to the infrastructural development of the country. Falling housing inventory levels and a much healthier banking system are the perfect platforms for the budget to anchor a strategic roadmap for the next decade.
    We should look at a multi-dimensional approach focused on the availability of improved & low-cost credit, forward-looking FDI inflow which allows foreign investment in completed housing, and inclusive participation in the start-up ecosystem through a dedicated fund focused on real estate innovations and digitization could go a long way in making the sector excel in 2022.
    The outlook is a positive upsurge because of the strategic decisions and changes that the Government brought into action to tackle the Covid crisis that gave an overall boost to the home buying sentiment especially in these difficult times with the onset of the third wave.
    Additionally, developers are hoping for provisions that will benefit the growth that includes the deduction of loss under house property, reduction in the income tax burden on rental housing and long-term capital gains on capital assets, relaxations in provisions for REITs for faster recovery in commercial real estate.
    We have also written to the government to urge for a reduction in tax for investments on Real Estate Investment Trusts (REITs) and, also demanded tax-neutral consolidation of businesses through the mergers, in order to help the homebuyers who got trapped in delayed housing projects.

    Union Budget 2022-23: Real Estate Sector Expectation (Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory)

    The year 2021 in many ways was the year of hope and revival whereas 2022 will be the year to sustain the growth momentum. The real estate sector, like others businesses, is looking forward to many positive, innovative and path-breaking announcements in the budget this year.
    Expectations from the Union Budget 2022-23:
    Deviation of 20% from circle rates should be extended across the sector and not limited to homes costing upto Rs.2 crores. The same will allow developers to offload the massive build-up of unsold inventory costing more than Rs.2 crores. Currently the major part of the unsold inventory is ready-to-move-in and falls in the luxury category.
    There couldn’t be a more opportune year to accord industry status to the Real Estate sector as a whole; currently the same has been accorded only to affordable housing. This is a long-pending demand and can help developers raise funds at lower costs.
    The government needs to push the well-capitalized NBFCs and banks to extend credit and liquidity to the players in the sector who have good equity left in their stuck projects.
    The government after the decent success of its SWAMIH fund, should announce several more funds that can help target specific real estate verticals that need liquidity support and high capital infusion like township developments and large format business parks.
    Extending no tax upto an income of Rs.10 lacs to all taxpayers for a year to give impetus to demand and consumption.
    The reduced repo rate has helped reduce EMI’s for homebuyers; the government should permit further deductions in the income tax for individuals availing homes to buy affordable and mid-income homes.
    The government should declare tax free, the rent income received from any one owned house across the country. The same will see the young, new age investor pour money in Real Estate.
    The real estate sector contributes the second most to employment in the country and is expected to contribute to the tune of 11% to the nation’s GDP. Keeping the same in mind specific threshold lead incentive for developers should be announced to encourage job creation in the category.

    Union Budget 2022-23: Real Estate Sector Expectation (Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers)

    Amid the pandemic, the Government has recalibrated its approach towards remobilizing the economy and introduced various reforms to ensure adequate liquidity in the system such as keeping the interest rates low, additional liquidity support to NBFC and HFCs. RBI’s accommodative stance for such a long duration too helped mitigate the effects of Covid-19 on businesses and was a key to the recovery of real estate and the overall economy. These reforms have eventually proven to be positive for the economy in the long run. The outlook on India’s economic growth in the coming years looks very positive with the way the Government has tackled the Covid crisis.
    The upcoming budget needs to be more attractive to foreign investors as it will be an ultimate platform to announce further incentives which will attract more foreign investments into the sector. Considering the rupee’s recent muted performance, this budget is an ideal time for reforms targeted at foreign inflows into India. We expect the government to reduce the tax on interest income which will help accelerate capital inflows to India. Liberalizing foreign investment norms in real estate is another widely expected move.
    The residential real estate market in India has become more lucrative for NRIs as a result of the increased transparency due to RERA and ease in investment norms. Given their efforts towards nation building, the NRIs expect the forthcoming Budget to reward them with sops such as ease of compliance under the Income-tax Act and reduction in withholding tax rates, among other relaxations.
    Real estate acts as a major growth driver for the Indian economy. The government must announce encouraging moves that can further attract foreign investments into the sector and help in huge employment generation.

    Union Budget 2022-23: Real Estate Sector Expectation (Mr. Bhushan Nemlekar, Director, Sumit Woods Limited)

    The government and the Reserve Bank of India (RBI) have done enough to bail out the real estate sector from depression, as it remains one of the most precise bellwethers of the state of India’s economy. The budget for 2022 will surely bring a positive outlook for the sector and we look forward to further emphasis on tax incentives, GST waivers, and Affordable housing this financial year. A series of key decisions taken by the government recently to revive the realty sector has improved consumer confidence and the impetus given to the residential sector is expected to yield positive results in the near future.

    Union Budget 2022-23: Real Estate Sector Expectation ( Mr. Himanshu Jain, VP – Sales, Marketing and CRM, Satellite Developers Private Limited (SDPL)

    The real estate sector was already in focus for the government in 2021, we expect a similar and a more refined response this year. The government has already played an immense role in driving the momentum of the industry with various announcements which benefited the developers and homebuyers last year. We have already addressed the positive outcome of the decisions, with a huge hike in sales all across the country. The budget 2022 will bring further relaxation to the sector if the government plans on further extending the already introduced relaxations. Additional benefits like GST waiver for under-construction homes hike in Rs 2 lakh tax rebate and incentives for private sector investments in the affordable housing segment; among others can be some of the measures Finance Minister Nirmala Sitharaman should consider in the upcoming Union Budget.

    Pre-Budget Expectation Reaction (Ms Manju Yagnik, Vice Chairperson, Nahar Group and Senior Vice President, NAREDCO)

    With the contribution of over 7% to India’s GDP, the real estate sector is one of the most important pillars of the economy. Post the Covid-19 pandemic last year, the residential sector has witnessed a stellar growth in terms of demand with homes becoming a necessity for safety and security. The lowest home loan rates along with reduction of stamp duty converted into phenomenal sales. The ongoing support from the ministry with the onset of the pandemic has ensured good sales momentum and we expect the continuance of support in the forthcoming budget to ensure complete recovery of the sector. We expect that waiver on the GST front be it for under-construction properties and for raw materials viz. steel and cement prices firming up. GST waiver will augur well with the industry for continued sales momentum. A GST Waiver would renew the focus of developers on new projects and would also help build sustained liquidity for the entire industry. Apart from the GST waiver, the focus should also be on providing an impetus to both affordable and rental housing as well as strengthening the existing financing systems to provide liquidity to stuck real estate projects. The real estate sector could also witness more stability with a low-cost credit system, a low-cost credit ecosystem, through priority sector lending categorisation of home loans.

    Union Budget 2022-23: Startup and MSME Sector (Ratish Pandey, Business & Executive Coach, Ethique Advisory)

    Had I been commenting about 20 days back, probably my comments would be more towards how the Federal Government should rebuilding and also focus on reducing the budget deficits. However in the 20 days gone by, we know exactly how uncertain things are with the new wave hitting India like a tsunami. The Modi Government should do well and I hope that will be able to make adjustment to their planning (as the budget document to my knowledge would almost be ready). With the current reality in front of us the following should be the focus: a. Government schemes to support infra and job creations should continue b. Schemes led by lending banks for MSME’s / SME’s should be extended at least the end of calendar year 2022 c. Continued support to the lower strata of the earning populace to ensure their well being d. For the start-ups, it has been a phenomenal year – thanks to all the brilliant ideas those scaled to India saw a huge spurt in number of unicorns. The support under the start-up India initiatives should continue and be extended by another year. e. For the Manufacturing / industrial sector specific PLI schemes has been successful. New sectors should be added.

    Pre-budget expectations from the Logistics Sector (Mr Bhavik Chinai, Group CEO, BVC Logistics)

    We expect the Union Budget to provide for large incentives for jewelry exporters for exporting <$1000 shipments which will boost e-commerce & could make India a global leader in jewelry, like in diamonds. A higher interest rate in the Gold Monetization Scheme will lead to improved Indian BOP & employment in the jewelry sector. We are hoping for a higher budget for new airports, tax benefits for logistics capex & simplification of procedures for new exporters through a single window between DGFT, Customs & GST will unquestionably help the e-commerce & logistics industries.

    Union Budget 2022-23: Education Sector Expectation (Manoj Chawla, CBO, Tribyte Technologies)

    While the pandemic has opened the minds about acceptance of Online/ Digital education, 2 immediate challenges need to be addressed: 1. Teacher Training 2. Access to devices Teachers: They have been caught unaware, but have somehow managed. But the pedagogy of teaching online is very different than ClassRoom based training. Investment as well as Directives in this regard are necessary. Access: In most families ( including Urban households), children need to share device with Siblings or Parents. In the lower economic strata, having mete access itself is a challenge. A concerted effort ( and budget allocation) is necessary to provide equitable access, as a first step.

    Union Budget 2022-23: Real Estate Sector Expectation (Mr. Rohit Gera Managing Director, Gera Developments)

    The real estate sector has finally started seeing a revival in many parts of the country after years.  At the same time, we have seen a tremendous amount of inflation in the input costs for all construction projects.  As a result, developers will be forced to raise prices for homebuyers.  At the same time we have seen a tremendous desire amongst people to increase their size of homes as a result of the pandemic.   This is a great time for the government to provide a time bound incentive in terms of a reduced capital gain tax.  Increasing the interest deduction as well as standard deduction will also help home buyers at a time when home prices will rise affecting their affordability.

    Union Budget 2022-23: Fintech Sector Expectation (Mr. Madhusudan Ekambaram, Co-Founder & CEO, KreditBee and Co-Founder, FACE (Fintech Association for Consumer Empowerment)

    The Union Budget 2022-23 is a crucial one, considering economy’s efforts to fully recover and set on a growth path. In this imperative, focus on financial inclusion is very significant. The Government’s recognition of the enhanced operations and effectiveness of fintechs to reach out to the unserved and underserved population, as evident from multiple initiatives in recent times, is encouraging. We expect this emphasis to become more prominent in the upcoming budget. It is essential that the Government announce measures to ease the liquidity flow to NBFCs and fintechs. Further, while ensuring the right degree of regulation, relaxation of norms and tax liberalization to some extent will allow the fintech sector to boost their reach and operate effectively to offer innovative credit solutions to the borrowers. Focus should also be on enhancing the country’s digitization bid, to empower the consumers to avail various credit products.

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