The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has introduced several measures impacting key sectors such as real estate, non-banking financial corporations (NBFCs), and the bullion market. Here’s an overview of the budget’s provisions and their alignment with industry expectations:
Real Estate Sector:
Tax Relief for Homebuyers: The budget has raised the income tax exemption limit to ₹12 lakh per annum, aiming to boost the purchasing power of the middle class. This increase in disposable income is expected to stimulate demand in the housing market.
Support for Affordable Housing: An allocation of ₹15,000 crore under the SWAMIH Fund 2 has been made to facilitate the completion of over 1 lakh stalled housing units, addressing delays and instilling confidence among homebuyers.
Rental Housing Reforms: The budget proposes lifting restrictions on claiming two properties as self occupied, which is expected to encourage investment in second homes and boost the rental market.
NonBanking Financial Corporations (NBFCs):
Credit Support for MSMEs: The government has allocated ₹1.5 lakh crore to support Micro, Small, and Medium Enterprises (MSMEs), which is anticipated to enhance credit flow and benefit NBFCs involved in MSME financing.
Taxation on Corporate Bonds: While the budget did not specifically address the reduction of taxes on interest received from listed corporate bonds, the overall focus on boosting investment may indirectly benefit NBFCs.
Bullion Market:
Import Duty Adjustments: The budget did not announce specific reductions in import duties for gold and precious metals. However, the government’s ongoing efforts to enhance transparency and promote organized trade in the jewellery sector continue to support the bullion market.
Industry leaders have expressed optimism regarding the budget’s provisions. The real estate sector, in particular, anticipates that increased disposable incomes and support for affordable housing will drive demand. BFCs are hopeful that enhanced credit support for MSMEs will bolster their lending activities. The bullion market (gold market) remains watchful for future policy measures that may directly impact import duties and gold monetization schemes.
Overall, the Union Budget 2025 introduces measures aimed at stimulating growth across these key sectors, aligning with several industry expectations and fostering a positive outlook for the economy.
