As the Union Budget 2025 approaches, expectations from the populace are beginning to grow. Citizens are looking forward to potential relief, especially concerning essential items like bread, clothing, and housing. Finance Minister Nirmala Sitharaman faces the significant challenge of addressing soaring prices for these necessities, which are fundamental to every household. In this article, we will explore the government’s plans to possibly reduce costs on these essentials and assess the economic implications of the upcoming budget.
The Rise in Prices: Understanding the Current Scenario
The prices of essential food items are experiencing a rapid surge. According to the National Sample Survey Office (NSSO), almost 40% of Indian households’ income is spent solely on food. In 2024, food inflation reached alarming levels, with the price of tomatoes skyrocketing by 161% and potatoes increasing by 65%. This steep rise in prices raises concerns about affordability for the average citizen.
Potential Government Interventions
In the upcoming budget, the government may implement measures to tackle these issues. Collaborations with the Reserve Bank of India (RBI) could help stabilize interest rates, while efforts to manage the exchange rate of the rupee might alleviate some inflationary pressures. Additionally, the government could take steps to reduce import inflation on edible oils and expand food subsidy schemes.
Will Housing Ever Become Affordable?
For millions of Indians, the dream of owning a home remains just that—a dream—largely due to escalating property prices. In 2024, cities like Mumbai and Delhi witnessed property price surges ranging from 13% to 30%. Although the budget for the Pradhan Mantri Awas Yojana (PMAY) was increased in the financial year 2024-25, only 9.1 million homes have been constructed to date.
Future Plans for Affordable Housing
In Budget 2025, the government may prioritize affordable housing schemes, focusing on both urban and rural areas. Possible initiatives could include:
- Increasing tax deductions on home loans.
- Promoting the construction of budget-friendly homes.
- Encouraging developers to lower manufacturing costs.
The Impact on the Textile Sector
The textile industry is a significant employment generator in India. However, it faces myriad challenges, including reduced domestic demand, rising production costs, and stiff global competition. The upcoming budget may include decisions aimed at boosting this sector.
Possible Boosts for the Textile Industry
Key proposals might encompass:
- Reducing GST on staple garments.
- Encouraging domestic production.
- Promoting the adoption of modern technologies.
By addressing these crucial areas, the upcoming budget could provide relief to the general populace while bolstering the overall economy of the country.