Union Budget 2025: Key announcements on infrastructure, AI, & urban reforms

Finance Minister Nirmala Sitharaman, in her presentation of the Union Budget for 2025-26, announced a host of measures aimed at driving infrastructure development and innovation. She stated that Rs 1.5 lakh crore will be provided in the form of 50-year interest-free loans to states for infrastructure projects.

In addition, the government will launch an asset monetisation plan for the 2025-30 period, aimed at infusing Rs 10 lakh crore into new projects, boosting the country’s infrastructure growth.

Sitharaman also revealed an allocation of Rs 500 crore to establish a Centre of Excellence in Artificial Intelligence (AI) for education, marking a step towards technological advancement in the education sector.

Further enhancing the nation’s development agenda, she announced that the outlay for the Jal Jeevan Mission will be increased to ensure 100% coverage of potable water supply to households.

Sitharaman concluded by stating that urban sector reforms, including those related to governance, urban land, and planning, will be incentivised to promote efficient and sustainable urban growth.