Loan Ki Baat, Aditya Ke Saath – Budget 2018, What It Brings

Updated on November 19, 20182 mins read

Budget 2018 has been a budget of big benefits. While Health insurance and Farmer benefits have taken the spot light, there is good news on affordable housing too.

FM is targeting 87 Lakh new houses being constructed and funded by the Govt in the next year. This is a huge number. The annexure to the budget talks about providing Rs 25,000 Cr for just the urban areas. That is another huge number! So, there is bounty available for people looking to purchase their first house. The subsidy allows them to get to their dream years before they could afford it.

In addition, the FM has announced a affordable housing fund under the National Housing Bank. This fund would get funds from bonds issued by NHB. Govt is also moving the ownership of NHB from RBI to itself. These structural factors will also accelerate the funding in this sector.

Govt also announced large funding for smart cities. These are cities like Kalyan, Pune, Coimbatore, Jaipur, Bhopal etc.The infrastructure build out in these cities will improve the livability of these places. Historically there has been massive migration to metro cities. As a result, all of them have massive infrastructure issues. Steps like metros and new airports are not even managing to keep pace with growth. On the whole, the quality of life is decreasing with more time lost to commutes and years of life lost to pollution. The only viable long term solution is to develop other cities as competition to Delhi, Mumbai, Bangalore and Chennai. The smart city project enables this transformation. Real estate and Infrastructure will build out in a rapid pace in these cities.

All of this put together has a multiplier effect as well. There will be an increase in jobs in real estate sector and in consumption of materials like Cement, steel etc. Similarly, there will be higher consumption of services of lawyers, accountants, architects and financial services. Thus, investment in real estate and infrastructure will drive up markets in these markets as well.

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Aditya Mishra

Aditya Mishra

Aditya has a Post Graduate Diploma in Finance and strategy from IIM Bangalore. He comes with rich experience in the field of strategic investments, venture capital and technology. During his nearly 7 year stint at TCS, Aditya gained deep experience in start ups and exploring new technologies and business models. As director innovation partner Network, Aditya identified start ups with innovative technologies and incubated them to maturity. Aditya's deep understanding of upcoming ubiqutous computing trends helped TCS make strategic investment decisions in this area. As head of sales West India, Aditya spear headed new collaborations for TCS in the banking and financial services space. With a zest for start ups and new innovations, Aditya co-founded Headstart Netwrok Foundation in the year 2007. This is a non profit organisation that promotes entrepreneurship. Aditya founded SwitchME in the year 2012. SwitchME was a pioneer in the field of specialised home loan advisory, conveniently based on an online platform. Today SwitchME has helped over 1000 customers with new home loans and balance transfers right at their doorsteps.

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