Budget 2024: Expectations for Real Estate Growth and Recovery
As India prepares for Budget 2024, expectations and anticipations are running high, particularly in the realm of economic reforms and sector-specific incentives. One of the key focal points is the proposed amendments to the Insolvency and Bankruptcy Code (IBC) of 2016. Lawyers and industry experts alike are urging the government to bolster the National Company Law Tribunal (NCLT) by increasing its benches. This move aims to expedite case resolutions and fortify the country's insolvency framework, crucial for managing distressed assets more efficiently.
Sanjeev Kumar, a Partner at Luthra and Luthra Law Offices India, underscores the need for specialized courtrooms designated for different stages of the Corporate Insolvency Resolution Process (CIRP). Such specialization could potentially streamline proceedings and reduce the backlog of cases, offering a more effective route to resolving corporate insolvencies.
The anticipated amendments to the IBC are expected to address critical gaps in the existing legislation, ensuring swifter and more predictable outcomes for distressed assets. Proposed changes might also empower financial creditors to drive resolution processes independently, thereby reducing reliance on judicial intervention.
Beyond the insolvency sector, industry bodies are advocating for substantial incentives to boost research and development (R&D) investments within India's pharmaceutical industry. Anil Matai, Director General of the Organisation of Pharmaceutical Producers of India (OPPI), suggests expanding tax concessions and enhancing deductions on R&D expenditures. Such measures could foster innovation and bolster India's position as a global hub for pharmaceutical research.
Meanwhile, the hospitality industry is lobbying for infrastructure status for hotels, a move intended to stimulate investment and promote sustainable growth. Industry leaders argue against categorizing hotels as luxury goods and advocate for tax breaks to encourage eco-friendly practices, aligning with broader environmental objectives.
Looking ahead, the upcoming budget session, scheduled from July 22 to August 12, 2024, promises to be transformative. President Droupadi Murmu has characterized it as "futuristic," signaling comprehensive policy reforms aimed at steering India towards becoming the third-largest economy by 2027. With an emphasis on economic growth, job creation, and sustainability, Budget 2024 holds the potential to shape India's economic trajectory for years to come.
In conclusion, the amalgamation of legal reforms, sector-specific incentives, and forward-looking policies underscores the government's commitment to fostering a robust economic environment. As stakeholders eagerly await the unveiling of Budget 2024, the stage is set for impactful reforms that could redefine India's economic landscape and propel it towards greater prosperity and resilience in the global arena.
(Budget 2024 Expectations Highlights: IBC 2016 Amendments Expected, Lawyers Urge Govt to Increase NCLT Benches, 2024.)