Real estate – FY24 Union
Budget emphasized on promotion of tourism and setup of Unity malls by states which are positive for hotels and malls players. But a proposal to tax part of distributed income by the business trust was negative for REITs. Part of the distribution from REITs (in the form of repayment of capital) was not taxable earlier, but the same would now be taxable. In addition, the budget introducedcap on deduction from capital gains on investment in residential house under sections 54 and 54F at Rs10 cr. This would work against investment in properties as well as investor demand.
Industrial & Infrastructure – FY24 Union
Budget focused on sustainable economic recovery through infrastructure creation. The government maintained its focus on capital expenditure with a budgeted growth of 37% in FY24BE to Rs10 lakh cr from FY23RE of Rs7.3 lakh cr. The bulk of the increase continues to be from railways (51% growth), roads and highways (25% growth), defense (growth of 8.5%), etc. Increased thrust on railways, roads, urban investment, renewable, bioenergy (CBG), etc. bodes well for the industrial and infrastructure sector.