will budget 2025 make roti Kapde makaan affordable again? // explained by bullish run
budget 2025 what to expect
how will the budget come
Look Budget 2025 is coming soon
You know Nirmala Sitharaman ji will make a lot of announcements on Saturday but the biggest challenge for her right now is the rising cost of essentials like bread cloth and home which we were talking about because this is the biggest foundation of the entire household. If you see in any house, Roti cloth and home are necessities. If this also becomes very expensive then somewhere people will be troubled. And this is going on under a lot of pressure right now.
There are a couple of reasons, one is that inflation is increasing a lot and at the same time the income has become stagnant. So, what happens is that if there is inflation but at the same time people's jobs are increasing, people's income is increasing, then it does not make much difference, but the problem is that inflation is increasing on one side.
On one hand, it is not being able to be afforded and on the other hand, the income of the people is not increasing as it should have, so there is a problem on both sides and that is why this time the Union Budget will be very important from the point of view of whether they can make it affordable or not.
Food Inflation
So let's see one by one, first of all if we talk about roti, food inflation, then what is the problem there, actually if you see, then food prices have been under a lot of pressure for the last one or two years, in fact, if I tell you the data of NSSO that has come, it has been told that a household spends 40% of its income only on food,
so you think if you spend 40% of your income only on this, then how will you be able to fulfill the rest of the needs, in 20224 the food inflation is like tomato prices have increased to 161, think 161 if we talk about potatoes, then there has been an increase of 65, the government has extended the Pradhan Mantri Garib Kalyan Yojana here for 80 crore people, keeping this in mind, as well as in 2024-25 if we talk about the government's food subsidy bill, it has actually decreased as compared to last year, that is, if you see in 2023-24, the food subsidy given by the government was Rs 212000 crore, it has reduced to Rs 205000 crore, so experts believe that we need structural reforms, so the question is this
what budget can give
What can Budget 2025 do to contain food inflation? So, here some targeted measures will have to be taken. Experts believe that the government should try to balance the interest rate in collaboration with RBI. Especially, the exchange rate of Rupee has a huge impact on inflation because you know that we import a lot of crude oil from abroad. When the prices of petrol and diesel increase, food inflation also happens directly. Secondly, edible oil in India still depends a lot on foreign countries. Our edible oil comes from abroad. So, what will happen if our exchange rate of Rupee depreciates rapidly. You know how much it has depreciated. It has crossed 86. If you see the dollar to rupee, we have to pay more here because of the fall in Rupee and that is one of the reasons. The biggest region where the government should try to focus on is Apart from this, the government can expand the food subsidy program here, it can provide agricultural production support in the 2025 budget so that prices can be stabilized, and food inflation can be controlled. Here the government can launch and expand a
program like Ujjwala Yojana. What is it that for now LPG is given to low-income households, it can be increased so that more people can get the benefit of Ujjwala Yojana. Now what happens is that under the Ujjwala Yojana, the subsidy on gas cylinder is Rs. So, for the rest of the people, you know that earlier every person, every household used to get a lot of subsidies on gas, but gradually the government removed it. So, it has to be seen whether the government is going to bring something like this in this budget regarding cylinder subsidy. Then in 2025 the government can bring some tax measures on essential foods like Pradhan Mantri Garib Kalyan Any Yojana. Whether it will be expanded further remains to be seen here
The Dream
In today's date, buying a house has become a very big dream in itself, especially in big cities like Mumbai, Delhi and in fact Gurgaon. If you see, some of you know the way the house prices have increased, that is, it is unbelievable. DLF suddenly came with it and it means the whole house was sold within 2 hours. So, such news is heard and because of this, what is happening is that the property prices in big cities have increased by about 30 percent in 2024. In view of this, the government had allocated 20.4 percent more to the Housing and Urban Affairs Ministry in the budget and the most important among these was the Pradhan Mantri Awas Yojana. Somewhere the government wants to focus on affordable housing because all the houses that are being built in big cities at this time have gone beyond the reach of the common man. They have become expensive but here the rate was fixed at 36.5% in Pradhan Mantri Awas Yojana But
what is the problem in this that since 2015, the government had sanctioned 1.2 crore houses to build so many houses but only 91 lakhs of them have been completed and still more than 30 lakh houses are yet to be built What could the budget be What can the government do in the budget The government will have to focus on the affordability gap and how to make the houses more affordable, especially in urban areas. For this, experts believe that the government should increase the tax deduction on home loans. What I mean to say is that here, suppose you are taking a home loan and the interest you pay on it, that gets deducted in your tax. In a way, you don't have to pay tax on it. If it is taxed, the government should increase the limit so that again, whatever EMIs etc. you are paying for the loan you have taken, it becomes tax free.
It has been said here that the government should broaden the affordable housing initiative so that more people can get these houses. The government should also incentivize the developers who build houses or real estate players so that they can build affordable houses for middle class families because they are not able to focus on it right now. Most of the houses are big housing complexes and the focus is not on houses for middle class families. Next, it is being said here that the scheme launched for migrant workers, the affordable rental housing complex believes that more focus should be given on public private partnership so that the construction done can be done.
The government can provide affordable rental options. Apart from this, there is an ambitious goal of 1 crore urban homes under Pradhan Mantri Awas Yojana Urban 2.0. Will the government push it further? Will it allocate more money so that the houses can become affordable for the people? This is another thing.
Textile sector
If we talk about your textile sector, it is very important. If you look at India's textile sector, 45 million people, 4.5 crore people are employed, so many people are dependent on it. If the textile sector has an impact, many people lose their jobs. So, what is happening now is that domestic demand has decreased. I will tell you the fact that on the basis of the National Account Statistics that came here, it was told that the expenditure of people on clothes, say, earlier people used to spend 6% on it, that has come down to 4%, meaning the demand has decreased. So, when the demand decreases, it is obvious that the textile sector will be in trouble. Apart from this, input cost is increasing, global competition is increasing, so somewhere the government should see what it can do, especially in Bangladesh right now. Whatever happened, Bangladesh is a big country in itself. If India became a player, did the government take advantage of it or not? Did we shift the base to India or not? In fact, in 2024-25, if you look at the budget that came last year, the government had made a significant increase. In the previous year, 33400 crores were allocated to the textile sector. This was increased to 4400 crores. And if you look at the fact, because of this, it was believed that India could increase its share in global textile exports. But what is the problem? It is still only at 3.9. We have not been able to increase our global textile exports. So, the government should focus on how to increase it.
What Budget 2025 Can Plan for Clothing Business
Ultimately, what can the budget do for this? Meaning, in the textile sector, the government See, firstly, financial and structural reforms are needed, meaning that in a way, let's say the GST rates are fixed, Basic garments, normal clothes etc., have to be made cheaper for the people, how can the government reduce the GST on it? Next, how can the government increase the domestic textile production by
Incentivizing it? The government should focus more on modernization, Like the scheme Technology Upgradation Fund Scheme was brought, the textile sector in our country has been running since a very old time, People are dependent on the same small machines, old machines, so the question is how the government can modernize it further, because until our textile Sector Unless we modernize and bring in new equipment, we cannot be competitive. If we cannot be affordable, we will have to do that.
Conclusion
The government will have to make food, housing and clothing affordable. We are going through an affordable crisis right now, so the budget for 2025 should not only provide immediate relief but also focus on long-term solutions. Renewed consent, economic stability, all these are important for us. Now everything depends on Finance Minister Nirmala Sitharaman ji that what kind of budget she presents on Saturday. Will roti cloth home be able to become affordable again or not? It will be interesting to see.
