– Naresh Tyagi
Green growth and sustainability are expected to be the defining themes of Budget 2025. By providing targeted incentives, streamlining policies, and encouraging sustainable practices, the government has an opportunity to unlock the potential of industries like real estate, textiles, and retail while aligning with India’s environmental and economic goals. Here’s a sector-wise perspective on expectations:
Real Estate: Boosting Green Housing
The construction of green housing projects is pivotal to achieving India’s environmental goals, and builders and developers are at the heart of this transformation. Budget 2025 is anticipated to introduce a range of incentives to encourage their active participation. Measures such as tax credits for using renewable energy, rebates for integrating sustainable practices, and fast-track approvals for green building projects could significantly accelerate the adoption of sustainable construction practices.
Moreover, green financing will play a critical role in driving this transition. While the government’s initiative to develop a “taxonomy for climate finance” is a commendable step, its success depends on practical, accessible financial instruments. Developers are keenly awaiting measures like lower interest rates for green projects, tax incentives, and subsidies for energy-efficient systems and sustainable materials. These steps would not only incentivize developers to invest in green technologies but also align the sector with global sustainability standards.
Green Financing: Creating a Foundation for Sustainable Growth
The availability of affordable and innovative green financing solutions is critical to realizing India’s sustainability vision. Budget 2025 must ensure that climate-focused financial products are more accessible. By introducing concessional interest rates, tax benefits, and subsidies for renewable energy systems, the government can encourage wider adoption of sustainable practices across sectors.
Additionally, to truly leverage green financing, the government must ensure greater private sector participation. Collaborative measures such as public-private partnerships, risk-sharing mechanisms, and regulatory reforms to enhance transparency in green financing could bolster investor confidence and fuel sustainable development.
Textiles and Retail: Toward a Sustainable Ecosystem
The textile sector remains a cornerstone of India’s economy, employing millions and contributing significantly to exports. However, the focus on sustainability is non-negotiable in today’s global marketplace. Budget 2025 should prioritize incentives for green initiatives, such as tax benefits for adopting sustainable packaging and energy-efficient retail operations.
The implementation of a National Retail Policy is another long-awaited reform. This policy could simplify compliance processes, improve logistics in Tier 2 and Tier 3 cities, and provide much-needed incentives for small retailers. These measures would create a level playing field, ensuring that smaller players can compete with larger, organized retailers.
Investments in retail skill development programs are equally critical. By focusing on digital marketing, technology adoption, and sustainability training, the government can prepare the retail sector for evolving consumer demands and global standards. A progressive budget addressing these priorities could stimulate private consumption, bolster retail growth, and foster an ecosystem that balances economic development with environmental and social responsibility.
The author is chief sustainability officer, Aditya Birla Fashion and Retail and industry expert on Sustainability.
