2. Reduced GST and tax incentives for construction materials

Previously - High GST rates on core materials such as cement and steel significantly increased project costs.
Now - The budget reduces GST rates on cement from 28% to 18% and steel from 18% to 12%. Additionally, it expands input tax credit eligibility for infrastructure projects, allowing developers to claim deductions on procurement costs.
Impact - Reduced GST rates will lower material expenses by up to 10%, leading to more affordable housing and commercial projects while improving profit margins for developers and contractors.

3. Enhanced credit access for contractors

Previously - Small and mid-sized contractors faced difficulties obtaining loans due to stringent collateral requirements and high interest rates.
Now - The Credit Guarantee Scheme has been expanded to ₹10 crore for mid-sized contractors, while micro and small enterprises can now avail loans up to ₹5 crore at lower interest rates with reduced collateral requirements.
Impact - Easier credit access will allow contractors to scale operations, bid for larger projects, and stabilise cash flow.

4. Streamlined approvals and regulatory reforms

Previously - Lengthy approval processes caused project delays and increased administrative costs.
Now - A single-window digital approval system is being implemented for land acquisitions, environmental clearances, and municipal permits, reducing the need for physical documentation and in-person approvals.
Impact - Faster approvals will reduce delays, cut overhead costs, and improve overall efficiency in project execution.

5. Workforce training and productivity enhancement

Previously - The industry suffered from a lack of skilled workers, causing inefficiencies and delays in construction timelines.
Now - The government has introduced ₹5,000 crores in skilling initiatives, training over 5 lakh construction workers in AI-driven project management, green construction, and automation techniques.
Impact - A more skilled workforce will improve project quality, reduce errors, and enhance site safety, ensuring faster completion times.

Industrial buildings