Budget 2024: As we gear up for Union Budget 2024, investors are closely eyeing the road map for the infrastructure sector, anticipating significant policy announcements and budgetary allocations.
Gurpreet Sidana, CEO of Religare Broking speaking to Mint, highlighted that the government had set a clear priority on infrastructure in the Interim Budget, allocating ₹11.1 lakh crore for capital investment, which was a notable 11% increase over the previous year's budget. This substantial allocation underscores the government’s strategic emphasis on infrastructure as a pivotal driver of economic growth, fostering employment, and enhancing overall productivity.
Sidana further added that , “India's infrastructure sector encompasses transportation, energy, telecommunications, and urban development. Despite notable progress, the sector continues to face challenges such as funding constraints, regulatory bottlenecks, and project delays. Initiatives like the National Infrastructure Pipeline (NIP) and Public-Private Partnerships (PPPs) aim to address these issues by outlining a comprehensive roadmap for infrastructure projects valued at several trillion rupees over the coming years.”
Sidana said that, “Expectations are high for policy measures that could catalyze growth in the infrastructure sector. Substantial budget allocations are expected towards enhancing transportation networks, urban infrastructure, and rural development.
Key focus areas will likely include expanding and modernizing the railway network, developing smart cities, improving road connectivity, and supporting the renewable energy sector. The promotion of public-private partnerships (PPPs) is expected to attract significant private investment.
Emphasis on green infrastructure and digital infrastructure, including broadband and 5G networks, suggests a forward-looking approach to sustainable development. Additionally, measures to enhance funding avenues through infrastructure bonds or innovative financing mechanisms could further bolster investor sentiment.”
Sidana does not expect any major disappointment in the budget and if there is some negative announcements which people don't expect like pertaining to the wealth tax or rise in the capital gains tax or increase in any other taxes , there could be some downside but not much.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
