Budget 2025: A Blueprint for Revitalizing India's Economy

The Union government's upcoming Budget 2025 may introduce innovative initiatives to bolster infrastructure, agriculture, MSMEs, and other sectors. Key strategies include alternate funding, production-linked incentives, and the promotion of a green economy, aiming for sustainable economic growth along with enhanced disaster management and educational reforms.

The Union government's forthcoming Budget 2025 is expected to unveil a series of dynamic measures designed to invigorate India's infrastructure, agriculture, MSMEs, and additional vital sectors, according to a State Bank of India report. The proposed strategies include securing alternative funding, specialized production-linked incentives, and initiatives to advance the nation's green economy and disaster preparedness.

Specifically, the report suggests introducing alternate funding avenues for infrastructure developments, like Tax Free Bonds, to reduce financing costs and accelerate growth. In agriculture, the creation of an omnibus Credit Guarantee Fund Trust is advised to support new agricultural loans and Agri Value Chain Financing through enhanced credit guarantees.

The budget also aims at re-evaluating the housing sector's Priority Sector Lending criteria and exploring new incentives for MSMEs, particularly in textiles, electronics, and food processing. Moreover, it underlines the necessity of a sustainable investment framework to meet India's climate goals, along with a Disaster Pool for natural calamity risk management.

(With inputs from agencies.)