Budget 2025 has introduced measures that are expected to stimulate real estate, construction, and allied industries while enhancing urban living conditions.
For integrated urban infrastructure projects, the Government has proposed funding multi-modal transit hubs and integrating transportation systems like metro networks, bus systems, and last-mile connectivity to ease urban mobility.
Water and sanitation infrastructure projects are sought to be upgraded through investments that will enhance drinking water supply systems and improve sanitation infrastructure in tier 2 and tier 3 cities. The focus will be on better waste management systems, including the establishment of waste-to-energy plants.
Additional funds have been allocated to expand India’s ‘Smart Cities Mission,’ focusing on digital infrastructure, energy-efficient buildings, and smart governance. There is a renewed emphasis on sustainable urban practices, such as rooftop solar systems and energy-saving technologies.
The provision of affordable housing is a clear priority of the Government. The Budget has increased allocations under the Pradhan Mantri Awas Yojana (PMAY), targeting low-income households in urban areas. Policies will encourage private sector collaboration for constructing affordable housing units.
Measures to protect cities from climate risks, including improved drainage systems and flood management, are part of the blueprint. There will be encouragement for green building standards and the adoption of eco-friendly technologies.
The proposed measures are expected to ease congestion and improve public transport systems in key cities, provide better access to clean drinking water and improve sanitation, thereby enhancing health outcomes. The thrust is on increasing energy efficiency, creating more sustainable cityscapes and giving a significant push to affordable housing, reducing urban housing shortages.