In a significant push for infrastructure development, the Union Budget 2025 has allocated ₹1.5 lakh crore in interest-free loans to states, aiming to accelerate key projects across sectors. This initiative is designed to empower state governments with enhanced financial flexibility for capital expenditure, ensuring rapid progress in infrastructure, transport, and urban development.
Additionally, the government has unveiled an ambitious ₹10 lakh crore asset monetisation plan, targeting public-sector assets to generate funds for new investments. This strategy aligns with India’s broader economic goals, focusing on efficient asset utilisation, attracting private investment, and boosting long-term economic growth.
The interest-free loan scheme for states will be tied to performance-linked incentives, ensuring timely execution of critical projects. Meanwhile, the asset mobilisation drive will prioritise monetising underutilised public assets across railways, highways, power, and urban infrastructure.
Experts believe these measures will strengthen India’s economic resilience, create employment opportunities, and enhance public infrastructure. With a strong emphasis on fiscal sustainability and private sector participation, Budget 2025 reinforces the government’s commitment to accelerating India’s infrastructure-led growth.
