New Delhi -The Builders Association of India (BAI), the apex all-India body of engineering construction contractors and real estate companies, has submitted its pre-budget proposals for the Union Budget 2025-26 and demanded a hike in infrastructure budget, tax incentives for infra companies, reduction in corporate tax, single window clearance system for infra projects, reduction in GST on construction material, constitution of infra investment trust among others. These proposals aim to drive sustainable growth in the country’s construction and infrastructure sectors.
With over 22,000 business entities as members through its 220+ branches and an indirect membership of over 1,50,000, BAI represents the collective voice of the construction industry, which is pivotal to India's economic progress.
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% for infrastructure companies. It has said that it will help stimulate investment and improve large-scale projects' financial viability. It has also demanded Streamlined Approvals for a single-window clearance system to expedite approvals for construction and infrastructure projects. It has also pressed to reduce bureaucratic delays and encourage timely project completion.
Shri Anand Gupta, Vice President, BAI, has pushed to reduce GST on Construction Materials to 12%, allocate Rs 50,000 crore for affordable housing, simplify RERA compliance and enhance infrastructure financing through NIIF. The BAI has also demanded to introduce infrastructure investment trusts (InvITs), reduce interest rates for infrastructure loans
"We believe these proposals will significantly contribute to the growth of the construction and infrastructure sector, vital for India's economic development," said, President K. Viswanathan, BAI. By addressing these key areas, the Union Budget 2025-26 can substantially boost the construction and infrastructure sector, creating jobs, stimulating economic growth, and improving citizens' quality of life.
The Meeting was chaired by the CBIC, Chairman, Shri Sanjay Kumar Agarwal, IRS, along with Senior Officials from the Union Finance Ministry. Shri Rajiv Goel, Vice President, BAI; CA Tarun Ghia, Chairman, BAI's Direct Taxation Committee; CA M. Raveendaran, Chairman, BAI's Indirect Taxation Committee; Shri Mohinder Rijhwani, Hon. General Secretary, BAI and CA Sanjay Chaudhary, Head Government Communication & Coordination, BAI Delhi Office were also participated in the meeting.
Founded in 1941, BAI has consistently worked to address operational and policy-level challenges faced by the construction industry. The Association's proposals, outlined ahead of the upcoming Union Budget, focus on enhancing infrastructure investment, creating a favourable policy environment, and addressing long-standing sectoral issues.
The fundamental aim of the Association is to bring about all-round improvements in the construction sector while striving towards the resolution of operational as well as policy-level problems faced by the construction industry. This involves making efforts to obtain from policymakers and authorities the level of attention that the construction industry deserves in view of its tremendous contribution and importance to the economy.