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Published 11:05 IST, February 1st 2025

Hiranandani’s Budget 2025 Expectations: Housing, Infrastructure, and Skilling at the Core

Niranjan Hiranandani stressed that India’s growth hinges on investments in infrastructure, housing, and skilling to address unemployment and drive progress.

Reported by: Business Desk
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What's On Niranjan Hiranandani's Budget Expectations List?
What's On Niranjan Hiranandani's Budget Expectations List? | Image: Republic

Ahead of the Union Budget announcement, real estate tycoon Niranjan Hiranandani highlighted that India's growth depends on strategic investments in infrastructure, housing, and skilling to tackle unemployment and drive sustainable progress. Speaking with Arnab Goswami, he outlined key priorities for achieving the country’s economic goals.

Infrastructure and housing

Hiranandani highlighted an important point about the nation’s growth trajectory. "If we want to achieve the growth targets for 2047—8% to 10% annually—we must focus on two critical factors: infrastructure and housing," he said.

Echoing the successful strategies seen in other rapidly growing economies like China, Hiranandani pointed out that when China's economy grew at double-digit rates, it was driven largely by substantial investments in infrastructure and housing. "Manufacturing is important, but automation has made it less labour-intensive. Therefore, infrastructure and housing remain important in driving growth and employment."

Hiranandani also acknowledged the challenges posed by the rising cost of living, which has been particularly hard-hitting for the middle class. As spending power gets squeezed, the need for affordable housing becomes even more pressing. "We have been talking about housing for all, but without a robust rental housing policy, it won't happen. Last year, the Prime Minister's initiative to provide rental housing for industrial workers was a step in the right direction, but we need this model across all sectors of the economy," he explained.

The concept of integrating housing with workspaces, like factories and industrial zones, could help ease pressure on the middle class, allowing workers to live closer to their workplaces at affordable prices.

Bridging the gap between unemployment and industry needs

Hiranandani also highlighted the mismatch between unemployment and the severe shortage of skilled labor. "There is a paradox in our labor market," he said. "While millions of young people are entering the workforce, we are facing a shortage of skilled workers like carpenters, electricians, plumbers, and fitters." He highlighted that companies such as L&T are actively seeking tens of thousands of skilled workers, but the supply is not keeping pace with demand.

Hiranandani’s own company, for instance, faces a deficit of 500 skilled workers. "This skill gap is critical. We cannot build our infrastructure or meet housing demands without the right workforce," he added.

To remedy this, he advocates for a larger, more comprehensive push towards skilling initiatives. "The government needs to prioritise skill development and integrate it with the needs of the economy," he added.

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Updated 11:05 IST, February 1st 2025