In its report on the upcoming Union Budget 2025, the State Bank of India (SBI) highlights several potential measures the government may announce to boost infrastructure, agriculture, MSMEs, and other critical sectors. These measures include alternative funding sources, production-linked incentives (PLIs), and strategies to enhance India’s green economy and disaster management capabilities.

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• The government may introduce alternative funding sources to reduce infrastructure financing costs, such as Tax-Free Bonds and Tax Paid Bonds.
• A Credit Guarantee Fund Trust for Agriculture & Allied Sectors (CGFTAAS) may be created to support agricultural loans and Agri Value Chain Financing (AVCF).
• The agricultural sector could benefit from implementing the 2021 report on agricultural value chains to improve efficiency.
• The definition of Priority Sector Lending (PSL) for the housing sector may be revised to include affordable housing projects costing up to ₹65 lakh in metro cities and ₹50 lakh in other areas.
• PLIs may be introduced for MSMEs in key sectors like textiles, garments, food processing, electronics, and auto components.
• There are recommendations to increase the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) allocation and incentivize banks to expand MSME loan coverage.
• The introduction of a green taxonomy could channel funds towards India’s climate commitments under the UNFCCC.
• A Disaster Pool may be set up to manage risks from natural disasters, modeled after existing Nuclear and Terrorism Pools.
• The education sector could undergo reforms, including collaborations with global institutions and the establishment of overseas centers for Indian institutes to attract international students.
• These measures aim to promote economic growth, resilience, and sustainability across key sectors.