Builders Association of India asks for a hike in infra spending in pre-budget proposal 

The Builders Association of India (BAI), which represents engineering construction contractors and real estate companies, in its pre-budget submission, has demanded an increase in infrastructure budget, tax incentives for infra companies, reduction in corporate tax.

It has also sought single window clearance system for infra projects, reduction in GST on construction material, constitution of infra investment trust among others. 

These proposals would drive sustainable growth in the country’s construction and infrastructure sectors, BAI said.

The BAI, in its charter, has demanded increased infrastructure spending by urging the government to allocate 10% of the country’s GDP towards infrastructure development, underscoring the sector’s critical role in driving long-term economic growth and creating jobs.

It has also pressed upon tax incentives for infrastructure companies by advocating for a reduction in the corporate tax rate to 15%.

This will help stimulate investment and improve large-scale projects’ financial viability, it said. 

It has also demanded streamlined approvals for a single-window clearance system to expedite approvals for construction and infrastructure projects. It has also asked to reduce bureaucratic delays and encourage timely project completion.

Anand Gupta, Vice President, BAI, said “The government should reduce GST on construction materials to 12%, allocate Rs 50,000 crore for affordable housing, simplify RERA compliance and enhance infrastructure financing through NIIF.”

“We believe these proposals will significantly contribute to the growth of the construction and infrastructure sector, vital for India’s economic development,” said K. Viswanathan, President, BAI

BAI representatives recently held a meeting with Finance Ministry officials to submit their demand.

The meeting was chaired by the CBIC, Chairman, Sanjay Kumar Agarwal along with other senior officials.