Prime Minister Narendra Modi hailed the Union Budget 2025 as a “people’s budget,” emphasizing its role in boosting savings, investment, and economic growth. Presented by Finance Minister Nirmala Sitharaman, the budget lays the groundwork for ‘Viksit Bharat’—a vision for a developed India. With tax relief, incentives for industry, and significant allocations for urban infrastructure and housing, the budget seeks to provide multi-faceted economic support.
PM Modi highlighted the tax exemption for individuals earning up to Rs 12 lakh (Rs 12.75 lakh with standard deduction) and revised tax slabs as key measures to increase disposable income and encourage savings. He also praised the budget’s impact on tourism, hospitality, shipbuilding, and farming sectors.
Strengthening Key Industries: Shipbuilding and Tourism
One of the most significant announcements in the budget is the grant of ‘industry status’ to shipbuilding. The Prime Minister stressed that this move will encourage domestic construction of large ships, boosting employment in a labour-intensive sector. By prioritizing shipbuilding, the government aims to strengthen India’s maritime industry and position the country as a global player in the sector.
Another major push comes for the tourism and hospitality industry. The government will facilitate the construction of hotels at 50 key tourist destinations, giving a fresh impetus to tourism. Additionally, bringing hotels under infrastructure classification is expected to drive investments in the sector, further enhancing employment opportunities.
Urban Development: A Rs 1 Lakh Crore Fund for Infrastructure
Recognizing the potential of cities as engines of growth, Finance Minister Nirmala Sitharaman announced the creation of an Urban Challenge Fund worth Rs 1 lakh crore. This fund will finance urban projects aimed at redeveloping cities, improving water and sanitation systems, and establishing cities as economic hubs.
The fund will cover up to 25% of project costs, with the condition that at least 50% of the funding comes from bonds, bank loans, or public-private partnerships (PPPs). For the 2025-26 fiscal year, an initial allocation of Rs 10,000 crore has been proposed.
Housing Relief for Middle-Class Families
Addressing housing concerns, the budget prioritizes middle-income homebuyers through the Special Window for Affordable and Mid-Income Housing (SWAMIH) initiative. Sitharaman revealed that 50,000 dwelling units have already been completed, bringing much-needed relief to homebuyers stuck in stalled housing projects.
An additional 40,000 units are set to be completed in 2025, ensuring that more families gain ownership of their homes. This initiative is particularly beneficial for those paying both rent and EMIs on delayed housing projects, reducing financial strain on middle-class households.
The Union Budget 2025 aligns with the government’s vision of a developed India by prioritizing tax relief, industrial growth, urban development, and affordable housing. By reducing the tax burden, expanding employment through key industries, and investing in urban infrastructure, the budget aims to stimulate economic growth while improving the standard of living for citizens.
With strategic financial measures across multiple sectors, Budget 2025 is poised to drive India towards its goal of ‘Viksit Bharat’, fostering sustainable and inclusive development in the coming years.
(With inputs from agencies)
