Expert calculation based special schemes have been introduced for transforming underdeveloped districts, boost pulse production, and enhance farmer’s capability through Kisan Credit Card loan limits

Byline: Hemant Jain, President, PHDCCI

Budget 2025 has reinforced India’s commitment to sustainability by prioritising green energy, climate resilience, and sustainable development. The budget aligns fiscal policies with global climate goals, paving the way for a greener and more sustainable future. While funding for afforestation, ecosystem restoration, and tiger conservation has been enhanced, that for biodiversity initiatives appears to be insufficient given India’s recently updated National Biodiversity Strategy and Action Plan.

Developing 100 GW of nuclear capacity by 2047 with increased participation from the private sector is a welcome step. Nuclear energy provides round-the-clock clean energy, obviates the need for creation of additional energy storage capacity required with variable renewable energy sources and provides stability to the grid. The proposal for development of five small modular reactors indigenously in the medium term can open opportunities for supply of non-fossil energy in hard to abate sectors.

A boost to clean-tech manufacturing in solar cells, grid-scale batteries, etc., will help enhance energy security. The expansion of this initiative to the full solar power value chain, starting with upstream components like polysilicon, ingots, and wafers, is eagerly anticipated. Centre of Excellence in AI will facilitate building intelligent Decision Support Systems.

The budget focuses on inclusivity of people, boosting the industry through green manufacturing and a large focus on nuclear. This includes the MSME support, support for private sector R&D (Research and Development), food security and nutrition.

The government wants to make India a hub for clean technology manufacturing. A special fund has been created to help cities improve their essential urban needs and the government will cover 25 per cent of the cost of these projects. To encourage a ‘circular economy’, the government is giving credit notes to those involved in ship breaking. This makes it more financially attractive to dismantle old ships and reuse the materials. The measures around ship breaking aim to make India’s ship breaking industry more competitive globally. Certain important raw materials (CRMs) and waste products needed for recycling can now be imported without import taxes. This will help boost recycling efforts within the country and reduce our reliance on new resources.

The Union Budget focused on making the agricultural sector more resilient. “The budget has a focus on human capital and seeks to put more money in the hands of people, while pushing several things to support Governments asset monetization plan with a big investment push across several sectors. The focus on making the agriculture sector more resilient, stress on R&D, improving connectivity, focusing on livelihoods, and positioning MSMEs as the engine of growth are in keeping with the goals of ‘Make in India’ and ‘Viksit Bharat’. Simultaneously, it also looks at sustainability in the energy sector by bringing in a target of 100 GW of nuclear capacity by 2047, pushing circularity in ship building industry, focusing on enhancing public transport, etc.

The Union Budget 2025 announced Government’s continued commitment for 100 per cent coverage of population under the Jal Jeevan Mission (JJM) with timeline extended till 2028 with enhanced outlay. While the promising commitment of quality and O&M of created infrastructure is a much desired and welcome step, it is effective and timely implementation would hold the key towards sustainability of JJM interventions. The Union Budget gives much desired boost to investment in drinking water provision, however, an increased impetus with enhanced investment is desired in other critical areas specifically the pollution abatement and wastewater management, which continues to be a major challenge.”

The government’s push for decarbonization by 2070, through the new critical mineral recovery policy. As India moves to decarbonize by 2070, while meeting its interim NDC target, announcement of a policy for recovery of critical minerals from tailings to support augmenting resources in critical technologies is a welcome move. Exemption of cobalt powder and related wastes, including scrap of lithium-ion battery, and twelve more critical minerals will help to scale up recycling capacities in the country supporting mineral security. This would contribute to achieving the goals of the National Critical Mineral Mission, as approved by the Cabinet.

The Union Budget 2025, has positioned the agriculture sector as the primary driver for a ‘Viksit Bharat, fostering inclusive, accelerated and sustainable growth, with a special focus on vulnerable groups like marginal farmers, women, and marginalized communities. Expert calculation based special schemes have been introduced for transforming underdeveloped districts, boost pulse production, and enhance farmer’s capability through Kisan Credit Card loan limits. Establishment of a Makhana Board in Bihar, improved urea supply in Assam are some key steps to empower poor farmers of Bihar and North-Eastern states.