24 July 2024

• Economy: Budget sector reactions: PM Awas Yojana Urban 2.0 earmarks 10 lakh crore rupees and 2.2 lakh crore central assistance for 1 crore urban families. Nuclear energy opened to private sector.
• Energy: Budget proposed joint ventures between government and private sector to develop Small Modular Reactors indigenously.
• Infrastructure: 12 plug-and-play industrial parks under National Industrial Corridor Development Programme (NICDP).
• Defence: Budget raised defence outlay to a record high; Bharat Small Reactors announced for private sector participation.

GS area: Governance, Economy, Social Policy

Budget 2024-25 announced PM Awas Yojana Urban 2.0 to address urban housing demand among lower and middle-income groups.

• Scale: 10 lakh crore rupees total investment over five years. Central assistance of 2.2 lakh crore rupees.
• Beneficiaries: 1 crore urban families from lower and middle-income segments.
• Key feature: The scheme mandates that the house be owned or co-owned by the female head of the family, reinforcing women's property rights.
• Interest subsidy: Eligible families receive an interest subsidy on housing loans.
• Urban context: India's urban population is approximately 35 per cent of total and is projected to reach 53 per cent by 2047. Urban housing deficit is concentrated among EWS (Economically Weaker Section) and LIG (Lower Income Group) categories.
• Complements: Transit-Oriented Development plans for 14 large cities (population over 30 lakh) announced alongside housing. TOD integrates urban housing with metro and bus rapid transit corridors.
• Previous PMAY progress: The original PMAY-U (launched 2015) targeted 1.12 crore houses. PMAY-U 2.0 is a sequel targeting the remaining deficit.

Static linkage: Urban housing policy (Governance/Economy), women's rights.

GS area: Science and Technology, Economy, Energy

Budget 2024-25 proposed joint ventures between the government and private sector to develop Bharat Small Reactors (BSRs) and Small Modular Reactors (SMRs) indigenously.

• Historic shift: The Atomic Energy Act 1962 barred private sector participation in nuclear energy. This is the first formal opening of the nuclear sector to private industry.
• Bharat Small Reactors (BSRs): Based on India's existing Pressurised Heavy Water Reactor (PHWR) technology, scaled down to up to 300 MW capacity. PHWRs use natural uranium fuel and heavy water as both moderator and coolant.
• SMR definition: Reactors with output below 300 MW are generally classified as SMRs. Globally, about 80 SMR designs are in development.
• India's nuclear share: Nuclear energy currently contributes 1.6 per cent of India's electricity generation. India aims to increase this to 25 per cent by 2047.
• Three-stage nuclear programme: Stage 1 (natural uranium PHWRs) is operational. Stage 2 (prototype fast breeder reactor) is ready at Kalakand but not yet commercial. Stage 3 (thorium-based) requires decades more fissile material accumulation.
• Geopolitical dimension: Reducing dependence on fossil fuel imports (largely from geopolitically sensitive regions) is a key driver of nuclear energy expansion.

Static linkage: Nuclear energy (S&T), energy security (Economy).

GS area: Economy, Geography

Budget 2024-25 announced 12 new "plug and play" industrial parks under the National Industrial Corridor Development Programme.

• Programme structure: 11 industrial corridors approved comprising 32 projects in four phases. The 12 new parks are investment-ready zones with pre-built infrastructure (roads, power, water, sewage).
• Plug and play concept: Industries can start production quickly without spending time on land acquisition and infrastructure development.
• Major corridors: Delhi-Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru Industrial Corridor (CBIC), East Coast Economic Corridor (ECEC), Odisha Economic Corridor (OEC).
• PM Gati Shakti: The 100 lakh crore National Master Plan that provides multi-modal infrastructure planning as the backbone for industrial corridor development.
• Logistics cost: India's logistics cost is 13 to 14 per cent of GDP versus 6 to 8 per cent in competitive economies. Industrial corridors with dedicated freight infrastructure aim to close this gap.
• NICDIT: National Industrial Corridor Development and Implementation Trust oversees implementation.

Static linkage: Industrial corridors (Economy), PM Gati Shakti (Infrastructure).

GS area: Environment, Economy

Budget 2024-25 announced a Climate Finance Taxonomy to guide investment toward climate solutions and prevent greenwashing.

• Purpose: Classify economic activities by their climate impact. Green activities attract concessional finance. Activities that are harmful or "washing" (falsely claiming green credentials) are excluded.
• Global precedents: EU, South Africa, Colombia, South Korea, Thailand, Singapore, Canada, and Mexico have adopted or are developing similar taxonomies.
• India's context: India needs vast climate investment for renewable energy, energy efficiency, clean transport, and climate-resilient agriculture. The taxonomy will channel domestic and international capital toward these priorities.
• Greenwashing risk: Without a taxonomy, companies can label bonds and loans as "green" without genuine environmental benefit.

Static linkage: Climate finance (Environment/Economy), sustainable development.

GS area: Social Justice, Governance

Budget 2024-25 made significant allocations for women and tribal communities.

• Women-focused schemes: Over 3 lakh crore rupees allocated across ministries for schemes that benefit women.
• PM Janjatiya Unnat Gram Abhiyaan: Targets 5 crore Scheduled Tribe families in 63,000 villages in tribal-majority districts. Budget allocation of 13,000 crore rupees for the Ministry of Tribal Affairs in FY2024-25.
• Women co-ownership: All new PM Awas Yojana houses must list the female head of household as owner or co-owner.
• PMJJBY and PMSBY: Jan Dhan-linked life and accident insurance schemes; budget continued their funding.

Static linkage: Tribal development (Social Justice), women's schemes (Governance).

• Defence budget: Defence outlay at a record high in 2024-25. Capital expenditure for defence raised to prioritise indigenisation under Positive Indigenisation Lists.
• Mudra loan limit increase: The Pradhan Mantri Mudra Yojana loan limit was raised from 10 lakh rupees to 20 lakh rupees for entrepreneurs who had previously repaid Tarun-category loans.
• DIGIPIN launch: The Department of Posts launched DIGIPIN, a 10-digit alphanumeric code for precise location identification. Each code covers a 4 metre by 4 metre grid. It does not store private address data. Could transform last-mile delivery and emergency services.