Union Budget 2025 To Focus On Infrastructure, Agriculture & MSMEs: SBI Report

ENA Economy 2025-01-27 14:47:12 New Delhi, Jan 27 (KNN) The State Bank of India has released a comprehensive report outlining potential measures expected in the upcoming Union Budget 2025, with a particular emphasis on strengthening infrastructure, agriculture, MSMEs, and other vital sectors of the economy through innovative funding mechanisms and policy initiatives. According to the report, the government is likely to introduce alternative funding instruments for infrastructure projects, including Tax Free Bonds and Tax Paid Bonds. These financial instruments would potentially offer more cost-effective funding options compared to traditional loan markets, particularly benefiting well-rated borrowers and accelerating infrastructure development across the country. In the agricultural sector, the report anticipates the establishment of an omnibus Credit Guarantee Fund Trust for Agri & Allied Sectors. This initiative would serve as a credit accelerator by providing coverage for new agricultural loans, including Agri Value Chain Financing. The implementation of recommendations from the 2021 agricultural value chain report is also expected to enhance operational efficiency within the sector. Significant changes may be introduced in the housing sector through modifications to Priority Sector Lending criteria. The report suggests that projects valued up to Rs 65 lakh in six metropolitan cities and Rs 50 lakh in other regions could be reclassified as affordable housing under PSL guidelines, representing an update to the 2018 standards. The MSME sector might receive targeted support through production-linked incentive schemes across various industries, including textiles, garments, handicrafts, food processing, leather, electronics, and auto components. The report also indicates potential increases in allocation to the Credit Guarantee Fund Trust for Micro and Small Enterprises, alongside incentives for banks to expand their MSME lending portfolios. Environmental sustainability emerges as a key focus area, with proposals for implementing a green taxonomy to direct investments toward India's climate commitments under the Nationally Determined Contributions. The report also recommends establishing a Disaster Pool, modeled after existing Nuclear and Terrorism Pools, to provide financial protection against natural calamities through a public-private insurance framework. The budget is also expected to address educational reforms through international collaborations and the expansion of Indian institutions overseas, aligning with the nation's aspirations to become a knowledge-driven economy and enhance its global educational presence. (KNN Bureau) 40806 https://knnindia.co.in/news/newsdetails/economy/union-budget-2025-to-focus-on-infrastructure-agriculture-msmes-sbi-report 2025-01-27 14:47:12 knnindia.co.in Union Budget 2025 To Focus On Infrastructure, Agriculture & MSMEs: SBI Report