Budget 2024: Higher focus on defence, railways, infra, green power to drive economic growth

Budget 2024: India's growth blueprint

Critical sectors like defence, railways, infrastructure and renewable energy are expected to see more intensified focus in the upcoming Union Budget for FY25. Experts predict substantial allocations and strategic initiatives will drive growth in these areas, reflecting India's long-term development goals under Narendra Modi's third term as prime minister.

Enhanced military capabilities, upgraded railways, expanded infrastructure, and a robust push towards renewable energy will likely be the central themes for the budget.

Here's a breakdown of what to expect in each area:

Defence sector

The defence sector is poised for significant investments to enhance India's military capabilities. With a budget outlay of Rs 6.21 lakh crore, a 4.72 percent increase over the previous budget, the focus will be on modernising military infrastructure and boosting domestic manufacturing. Key projects will likely include the development of advanced weaponry, naval vessels, and missile defence systems, supporting the government's vision of achieving a $25-billion defence output by 2025.

Railway sector

The Indian Railways is set for major upgrades, with an emphasis on freight corridors, passenger safety, and comfort. The budget allocation of Rs 2.55 lakh crore will fund projects like upgrading rail bogies to the Vande Bharat standards and developing three major economic railway corridors. These initiatives aim to increase efficiency, connectivity, and revenue, building on the 1,434.03 MT of freight loaded in FY24.

Infrastructure sector

Road transport and highway development will receive a significant boost, with Rs. 2.78 lakh crore allocated to the Ministry of Road Transport and Highways. The focus will be on expanding the national highway network and enhancing connectivity across the country. With ongoing projects of Rs 79,789 crore, India aims to build over 6,270 km of national highways, facilitating better transportation of goods and passengers.

Also read: Budget 2024: Here's why FM Nirmala Sitharaman will present the budget in July this year

Renewable energy sector

Renewable energy is a cornerstone of India's green transition, with the government committing to ambitious targets in solar, wind, and bioenergy. The bu`dget will support the installation of rooftop solar systems for 10 million households and viability gap funding for 1,000 MW offshore wind projects. Additionally, new schemes will promote bioenergy, aligning with India's goal of achieving net zero by 2070.

Strategic focus for a sustainable future

The Budget 2024 will prioritise sectors that are pivotal to India's economic growth and sustainability. Defence, railways, infrastructure, and renewable energy will see significant investments, driving progress and development in the coming years. This strategic focus aims to strengthen India's economic framework and bolster its global standing.