Budget: Government may announce new measures for infrastructure, PLI and agriculture

New Delhi| The central government may announce new measures to promote infrastructure, agriculture, MSMEs and other important sectors in Budget 2025. State Bank of India has said this in one of its reports. The SBI report said that these measures include alternative sources of raising money, production targeted incentive schemes (PLIs) and strategies to strengthen India’s green economy and disaster management.

Emphasis will be on reducing financing of infrastructure projects
According to the report, the government may introduce an alternative measure framework for financing infrastructure projects in the budget. This can reduce the cost of financing and promote infrastructure development. The report suggested the creation of an omnibus loan guarantee fund trust for the agricultural and allied sectors (CGFTAAS). This will ensure coverage for new agricultural loans, including agricultural value chain financing (AVCF). It has also recommended implementing the 2021 report on agricultural value chains to improve the efficiency of the sector.

Suggestion to change the definition of PSL to provide affordable houses
According to the SBI report, the housing sector may see a change in the definition of Priority Sector Loan (PSL). Projects costing Rs 65 lakh in six metro cities and Rs 50 lakh in other areas can now serve to provide affordable housing to people under the PSL, a revision of the 2018 norms.

Benefits of PLI should be given in areas like food processing and electronics
Talking about the MSME sector, the report said PLI should also be launched for key sectors like textiles, apparel, handicrafts, food processing, leather, electronics and auto components. The report also suggested increasing the allocation to Credit Guarantee Fund Trusts for Micro and Small Enterprises (CGTMSE) and encouraging banks to expand MSME loan coverage.

A unit formed for risk management of natural disasters
In the budget, the government may also focus on introducing a green taxonomy with the aim of raising funds for India’s climate commitments. Apart from this, the report also proposes the establishment of a disaster pool for risk management of natural disasters. On the lines of the existing nuclear and terrorism pool, such a bridge built can help reduce financial losses caused by disasters through public-private insurance initiatives.

Suggestion of cooperation with global institutions in the education sector
The education sector may see improvement through collaboration with global institutions and establishment of foreign centers for Indian institutions. This will attract international students. This step will help India move towards its goal of becoming a knowledge-driven economy. According to the report, these recommendations aim to promote economic growth, resilience and stability in key sectors.