 "Prashant Vatkar, MD, HIL Limited")
The housing market has been facing stiff challenges with mounting pressure on the rural economy, further aggravated by inadequate monsoons for two consecutive years along with a slackening real estate demand across the country. The total outlay for infrastructure at Rs 221,246 crores comes as a commendable move to boost the infrastructural framework of the country.
The Union budget’s allocation of Rs 35,984 crores for agriculture and farmer welfare is a promising step in bolstering confidence and reviving demand in the rural economy. This is further supplemented by the impetus to catalyse the housing market with measures such as service tax exemption for construction of houses less than 60 sq m coupled with an additional exemption of Rs 50,000 for housing loans up to Rs 35 lakh, provided the cost of the house is not above Rs 50 lakh. The total outlay for infrastructure at Rs 221,246 crores further comes as a welcome move for stimulating infrastructural development. We foresee a surge in demand for housing, further facilitated with a better rural economy.
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Prashant Vatkar is the managing director of HIL Limited, a the CK Birla Group company that manufactures home building materials
