Chandigarh, Jan 12: “India’s infrastructure and real estate sectors are at a critical stage, shaping cities, generating employment, and supporting economic growth across tier-2 and tier-3 cities. Despite strong project pipelines in roads, metro networks, airports, and residential and commercial housing, the sector faces significant challenges. Rising costs of steel, cement, aluminium, bricks, ready-mix concrete, and timber, delays in land acquisition due to prolonged negotiations and compensation settlements, and municipal approvals, and supply chain disruptions, including transport bottlenecks and dependence on imported materials, are slowing project completion and increasing costs. These bottlenecks are affecting housing affordability, delaying critical infrastructure, and limiting the sector’s ability to drive inclusive urban development.
As India strengthens its urban development priorities, Union Budget 2026 offers a strategic opportunity to address these challenges. Reducing GST on steel, cement, aluminium, bricks, ready-mix concrete, and timber, incentivizing domestic production of construction materials, and allocating funds to fast-track land acquisition, environmental clearance, and municipal approvals can significantly lower project costs and accelerate delivery. Budget-backed initiatives like the Urban Challenge Fund for city infrastructure and the SWAMIH fund for affordable and mid-income housing can revive stalled projects, attract private investment, and improve housing accessibility.
Further support through public-private partnerships, investment in eco-friendly construction technologies, and improved logistics for material delivery will ensure faster, sustainable, and resilient development. Prioritizing these measures in the budget will not only accelerate project delivery but also create jobs, improve urban liveability, and build inclusive, future-ready cities.”