₹4.32 Lakh Crore PSU Capex, ₹11.2 Lakh Crore Infra Push, 120 New Airports & More!

The Union Budget 2025 has set the stage for massive capital expenditure, particularly in Public Sector Undertakings (PSUs), with an extraordinary 100% increase in extra-budgetary support, reaching ₹4.32 lakh crore. The biggest allocations have been Petroleum & Natural Gas (₹75,000 crore) and Power (₹39,000 crore), signaling a strong push towards infrastructure development and energy security.

The government has laid out ambitious plans in the power sector, including 100 GW of nuclear energy by 2047 and ₹20,000 crore towards research in Small Modular Reactors (SMR). Enhanced financial support for power distribution companies (Discoms) and increased allocation for solar energy initiatives like the PM Surya Ghar Muft Bijli Yojana are also on the table. These initiatives will likely benefit companies like NTPC, Tata Power, L&T, and Power Grid.

The budget maintains the tax structure for the tobacco industry, which means stability for companies such as ITC and Godfrey Phillips. Meanwhile, the consumption sector gets a boost with a reduction in income tax burden, potentially increasing disposable income and benefiting FMCG giants like Hindustan Unilever (HUL), ITC, and companies in consumer durables and hospitality.

Infrastructure remains a priority, with ₹11.2 lakh crore capex planned for roads, highways, railways, and defense, benefiting firms like L&T, KNR Construction, and Ashoka Buildcon. The agriculture sector also receives strong support, with an increased loan limit under the Kisan Credit Card (KCC) and focused backing for cotton, pulses, and dairy.

The leather industry gets attention with a product-specific focus, helping brands like Redtape and Metro Brands. Electronics manufacturing sees reduced custom duties on components, favoring Dixon Technologies and Elin Electronics.

The budget also emphasizes digital and physical connectivity, extending the Jal Jeevan Mission till 2028 and promising broadband access to secondary schools and public health centers. Additionally, the modified UDAN scheme aims to improve air connectivity to 120 new destinations over the next decade, benefiting aviation giants like GMR Airports.

Tourism is another focal point, with the top 50 destinations getting development support. Medical tourism will also be promoted in partnership with the private sector, likely helping healthcare firms such as Apollo Hospitals and Rainbow Children’s Hospital.

In a major boost to green energy and sustainability, the budget provides a full exemption of custom duty on crucial materials for battery manufacturing and recycling, including lithium-ion, lead, and zinc. Companies like Amara Raja, Exide, and Gravita India are poised to benefit from these changes.

The budget paints a picture of aggressive spending on infrastructure, energy, and industrial growth, setting the foundation for long-term economic expansion.