Kumar Mangalam Birla, Chairperson, Aditya Birla Group, says the Budget also focuses on power sector revitalisation, particularly in electricity distribution and intra-State transmission.
| Photo Credit: The Hindu
Finance Ministers face a perennial balancing act when crafting Budgets. They must articulate the government’s broader policy vision while maintaining fiscal discipline — a task that is as complex as it is consequential.
Nirmala Sitharaman’s latest Budget achieves this with precision. It lays out a clear road map for Viksit Bharat while remaining steadfast in its commitment to fiscal consolidation. At its core is a renewed emphasis on consumption with a ₹1 lakh crore boost. Higher discretionary income will flow into sectors like housing, automobiles, consumer goods, and travel, providing a much-needed demand stimulus.
The government has also maintained its consistent focus on infrastructure. A central pillar of this strategy is the expansion of the Public-Private Partnership (PPP) model. The Finance Minister has directed all infrastructure-related Ministries to identify three-year project pipelines under the PPP framework, with States encouraged to participate. To accelerate this transition, the government has earmarked ₹1.5 lakh crore in 50-year, interest-free loans to States for capital expenditure, incentivising them to align with national infrastructure priorities.
Asset monetisation remains a key funding mechanism. The government has announced a Second Asset Monetisation Plan (2025-30), targeting ₹10 lakh crore, significantly larger than the ₹6 lakh crore goal of the first plan introduced in 2021-22. This initiative underscores the administration’s strategy of recycling capital from existing public assets to finance new infrastructure development.
The Budget also focuses on power sector revitalisation, particularly in electricity distribution and intra-State transmission. States that implement crucial discom reforms will be permitted additional borrowing of up to 0.5% of their Gross State Domestic Product (GSDP), reinforcing fiscal incentives to drive much-needed structural changes.
A notable shift is the government’s mission-mode approach to nuclear energy. With an ambitious 100 GW nuclear power target by 2047, the Budget proposes amending the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, opening the sector to broader private participation. It also commits ₹20,000 crore for research and development of Small Modular Reactors (SMRs), underscoring the importance of indigenous innovation in India’s energy transition.
Aviation also gets due attention. The modified UDAN scheme aims to add 120 new destinations, targeting 4 crore additional passengers over the next decade. Meanwhile, private sector access to PM Gati Shakti portal data is expected to enhance infrastructure planning, further integrating public investment with market-driven efficiency.
Ultimately, India’s ambition to become a developed nation hinges on the quality of its infrastructure. This Budget makes it clear that the Modi government is committed to removing bottlenecks, unlocking capital, and accelerating development. It is a strategy rooted in pragmatism — one that prioritises long-term investment over short-term populism and seeks to lay the groundwork for sustained, high-quality growth.
Kumar Mangalam Birla is Chairperson, Aditya Birla Group
Published – February 02, 2025 01:17 am IST
