Fiscal discipline, FDI push and urban investment key to sustaining momentum
NEW DELHI, Jan 15 (The CONNECT) — As a new global economic order takes shape, India’s Union Budget faces a delicate balancing act between fiscal discipline and growth support, with implications stretching from capital markets to real estate and urban liveability, according to Amit Goyal, Managing Director, India Sotheby’s International Realty.
India remains among the world’s fastest-growing major economies, but visible global and domestic headwinds mean the government must carefully manage borrowing costs while continuing to back investment and expansion. Both, Goyal noted, are critical for India’s ambition to become the world’s third-largest economy and achieve the USD 5 trillion milestone.
From a real estate standpoint, 2025 delivered strong and broad-based momentum. Sustaining that pace, however, will depend heavily on continued buoyancy in equity markets, healthy business sentiment, and steady foreign capital inflows. Goyal underscored the need for budgetary measures that actively encourage higher levels of foreign direct investment, which remains a key driver of long-term real estate confidence.
Equally crucial, he said, are robust allocations for urban development. Improving liveability in Indian cities is no longer optional, with challenges such as air pollution, water quality, waste management and infrastructure gaps directly shaping quality of life, investment appetite and the sustainability of real estate growth. Addressing these fundamentals meaningfully will be central to India’s next phase of economic and urban evolution.
