Union Budget 2025: Investment Friendliness Index of States on the cards

A substantial ₹20,000 crore allocation will support a private sector-led research, development and innovation initiative.

Dileep V Kumar

Published Feb 01, 2025 | 4:56 PM ⚊ Updated Feb 01, 2025 | 4:56 PM

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Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman unveiled a series of transformative initiatives across infrastructure, mining, trade and regulatory frameworks during her Union Budget 2025-26 address in Parliament on Saturday, 1 February.

These measures aim to bolster public-private partnerships, modernise governance and streamline business regulations, reinforcing India’s position as a key player in the global economy.

Infrastructure development receives a significant boost, with all related ministries required to present a three-year pipeline of projects for implementation under the public-private partnership (PPP) model.

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Through the India Infrastructure Project Development Fund (IIPDF), states will receive financial support to adopt this approach.

Within the mining sector, reforms will include a State Mining Index and a policy for recovering critical minerals from tailings.

Additionally, a substantial ₹20,000 crore allocation will support a private sector-led research, development and innovation initiative.

The launch of the National Geospatial Mission under PM Gati Shakti will facilitate modernisation of land records, urban planning and infrastructure project design. PM Gati Shakti is a digital platform bringing 16 ministries, including Railways and Roadways, together for integrated planning and coordinated implementation of infrastructure connectivity projects.

Among key priorities, export promotion will advance through a dedicated Export Promotion Mission to enhance sectoral and ministerial targets.

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For trade documentation and financing solutions, the newly announced BharatTradeNet will serve as a unified digital public infrastructure, complementing the Unified Logistics Interface Platform.

A High-Level Committee for Regulatory Reforms will review existing licences, certifications and permissions to improve business regulations.

Additionally, to promote competitive federalism, an Investment Friendliness Index of States will debut in 2025.

(Edited by Dese Gowda)