Flash | India | February 2022

Budget 2022-23:
Colliers Impact Analysis

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 India | Feb 2022

Union Budget 2022-23

GDP (2022-23)
8-8.5%
Growth to be led by
supply-side reforms
Ministry of housing
and urban affairs
Up 5%
Capital outlay up YOY
Introduction
The Union Budget 2022-23 aims to provide a
blueprint for India over the next 25 years. The
government is building a future-proof
Fiscal Deficit economy and took strides towards digitization
6.4% and climate change. Ease of doing business is
For 2022-23 high on government’s priority, with plans of
launching ‘Ease of Doing Business 2.0.’
From a real estate perspective, the budget
continues to commit towards affordable
housing. Increased infrastructure spending on
urban transport, highways and multi-modal
INR62,100 logistics can modernize and spur investments
into logistics. However, incentives to
crore homebuyers especially to the lower and mid
Budgetary allocation under income groups were largely missed in the
PMAY Scheme. AMRUT, budget.
Smart City Mission

Infrastructure & Urban

Housing
Development

Announcement: Announcement:

• INR20,000 crore allocated for • INR48,000 crore allocated for

expanding National highway
network by 25,000 kms in FY23
• Modernization of building bye laws,
town planning scheme
Impact:
• Rejuvenation of cities and increased
opportunity for developers
FY2022-23 under affordable housing
scheme to build 80 lakh houses in
rural and Urban India
Impact:
• Improving affordable housing stock
in rural and urban areas

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Source: Colliers
 Impact analysis
Transparency
Announcement:
• Ease of doing business 2.0 to be launched
• Digitization of land records
• Scope of single-window portal that was
established in 2018 to be expanded for all
green clearances
• ‘One nation one registration’ for uniform and
anywhere registration of deeds
Impact:
• Enhancing business environment, removing
red tapism and attracting foreign capital
Data Centers
Announcement:
• Data Centers to be given infrastructure
status
Impact:
• Enabling data centers access cheaper
financing; helping India become a data
center hub
Special Economic Zones (SEZ)
Announcement:
• SEZ Act to be repealed and replaced with a
new law
Impact:
• Making export-oriented parks attractive for
investments
*MSMEs- Micro, Small & Medium Enterprises
**ECLGS- Emergency Credit Line Guarantee Scheme
Industrial and Logistics
Announcement:
• 100 PM Gati Shakti cargo terminals to be
developed for Multi modal logistics
• 4 Multi-Modal Logistic Parks (MMLP)
contracts to be awarded on PPP basis
• INR19,500 crore allocated for manufacturing
of solar PVs and high efficiency modules
Impact:
• Enhancing supply chain efficiency and
boosting warehousing and logistics facilities
Start-ups & MSMEs*
Announcement:
• To avail of tax benefits, the period of
incorporation for start-ups extended by a year
to March 2023
• Extension of ECLGS** scheme till March 2023
Impact:
• Incentivizing start-ups and encouraging
investments in low-tax environment; Big boost
to MSMEs
Electric Vehicles (EV)
Announcement:
• Battery swapping policy and interoperability
standards for EV promotion
• Special mobility zones for electric vehicles to be
developed
• Expanding charging network 3
Impact:
• Addressing the space constraints in urban
areas for setting up charging stations would
enable faster EV adoption
For further information, please contact:

Ramesh Nair
Chief Executive Officer I India & Managing
Director, Market Development I Asia
ramesh.nairceo@colliers.com

Vimal Nadar
Senior Director & Head of Research | India
vimal.nadar@colliers.com

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