On February 1, 2025, Union Housing and Urban Affairs Minister Manohar Lal Khattar announced that the Budget 2025-26 will significantly enhance the quality of life in urban areas across India. Presented by Finance Minister Nirmala Sitharaman, this budget aims to initiate transformative reforms over the next five years, focusing on urban development and infrastructural improvements. Khattar emphasized that urban development is a priority, aiming to modernize cities and improve living conditions. The minister noted that the budget serves as a strong foundation for achieving the vision of a ‘Viksit Bharat,’ or developed India, by enhancing urban resilience and fostering inclusive growth. Key initiatives include the establishment of a Rs 1 lakh crore Urban Challenge Fund, which will finance projects like the ‘Cities as Growth Hubs’ initiative, creative city redevelopment, and improvements in water and sanitation. These measures underscore the government’s commitment to ensuring that the benefits of urbanization reach every citizen. Furthermore, the revamped PM SVANidhi scheme is designed to empower street vendors by facilitating access to bank loans, introducing UPI-linked credit cards, and providing capacity-building support. Khattar’s statements paint a promising picture of a future where urbanization translates into improved living standards for all residents.
Transformative Reforms for Urban Development
The Budget 2025-26 outlines a roadmap to implement transformative reforms across six key areas, with urban development as a central focus. The government aims to modernize urban infrastructure, which includes enhancing transportation systems, sanitation facilities, and public spaces. Such improvements are expected to promote economic growth and boost global competitiveness. The Urban Challenge Fund will play a crucial role in funding innovative projects that aim to revitalize cities and make them more livable. This fund reflects the government’s vision of creating urban areas that not only accommodate but also enrich the lives of their inhabitants. Khattar emphasized that a developed urban environment is necessary for sustained growth, highlighting that cities must become growth hubs that attract investment and talent. The proposed reforms are designed to address the challenges posed by rapid urbanization, including inadequate infrastructure and housing shortages, ensuring that urban areas can support a growing population while maintaining a high quality of life. By prioritizing these areas in the budget, the government seeks to create sustainable urban ecosystems that thrive economically, socially, and environmentally.
Empowering Street Vendors through the PM SVANidhi Scheme
One of the notable aspects of Budget 2025 is the revamped PM SVANidhi scheme, which aims to significantly benefit street vendors across urban areas. Over 68 lakh street vendors have already gained from this initiative, which provides them with access to microloans to help grow their businesses. The budget introduces enhancements to the scheme by offering UPI-linked credit cards with a limit of Rs 30,000, facilitating easier access to funds. This access to credit is crucial for street vendors, who often struggle to secure loans from traditional banking systems due to a lack of collateral. The budget also emphasizes capacity-building support, aiming to equip street vendors with the skills necessary to thrive in a competitive market. By investing in this demographic, the government acknowledges the vital role that street vendors play in urban economies. They contribute to local economies and provide essential services to urban residents. The measures included in the budget reinforce the government’s commitment to inclusive development, ensuring that all segments of the urban population benefit from economic growth and infrastructural advancements. As urban areas evolve, empowering street vendors is a step towards a more equitable society.
Conclusion: A Vision for Sustainable Urbanization
In summary, Budget 2025-26 presents a comprehensive approach to urban development that prioritizes quality of life improvements in cities. With a focus on modernizing infrastructure, establishing growth hubs, and empowering marginalized groups like street vendors, the budget aims to create sustainable urban environments. Minister Khattar’s emphasis on the Urban Challenge Fund and the revamped PM SVANidhi scheme indicates a commitment to fostering inclusive growth. As these initiatives are rolled out, they are expected to transform urban landscapes, making them more resilient and adaptable to future challenges. The vision of Viksit Bharat is not only about economic progress but also about ensuring that urbanization benefits every citizen. With the right investments and reforms, India’s cities could soon become models of modern urban living, balancing growth with sustainability and inclusivity.
