Budget 2025: Can Sitharaman Make Roti, Kapda, Makaan Affordable Again

KKN Gurugram Desk | With Budget 2025 around the corner, Finance Minister Nirmala Sitharaman faces the monumental challenge of addressing the rising costs of essentials: roti (food), kapda (clothing), and makaan (housing). These three pillars of daily life have been under tremendous pressure due to inflation, stagnating incomes, and supply chain disruptions. The upcoming budget carries the hopes of millions for relief and sustainable solutions.

Roti: Tackling Food Inflation and Ensuring Food Security

Food inflation has been a persistent issue, with basic food items becoming more expensive. According to recent data, food inflation reached record highs in 2024, with tomato prices surging by 161% year-on-year and potatoes by 65%.

Current Measures and Challenges

• Food Subsidies: Initiatives like the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) benefited over 80 crore people, but allocations for food subsidies were reduced in the last budget.
• Structural Issues: Experts call for reforms in agricultural production and supply chain management to ensure long-term stability in food prices.

What Budget 2025 Could Offer

• Expanded Subsidies: Increased allocations for PMGKAY and programs like the Ujjwala Yojana for subsidized LPG.
• Tax Relief on Essentials: Possible exemptions on taxes for basic food items to reduce retail prices.
• Support for Farmers: Enhanced support for agricultural infrastructure and minimum support prices to stabilize the supply chain.

Makaan: Making Housing Affordable for All

For many Indians, owning a home remains a dream as property prices in cities like Mumbai and Delhi surged by 13–30% in 2024. Housing affordability has been a growing concern, with only 91 lakh houses out of 1.2 crore sanctioned under Pradhan Mantri Awas Yojana (PMAY) completed since 2015.

Government Initiatives So Far

• The 2024-25 Budget increased allocations for the Housing and Urban Affairs Ministry by 20.4%, primarily to boost PMAY.
• The Affordable Rental Housing Complexes (ARHC) scheme was launched to provide housing options for migrant workers.

What Budget 2025 Could Offer

• Increased Tax Deductions: Higher tax exemptions on home loans to ease the financial burden.
• Boost to Urban Housing: Enhanced funding for PMAY and incentives for developers to build affordable homes.
• Strengthening Public-Private Partnerships (PPP): Encouraging collaborations to address delays and streamline construction processes.

Kapda: Reviving India’s Textile Sector

The textile industry, employing over 45 million people, has been struggling with reduced domestic demand and rising costs. Clothing expenditure has declined significantly over the past decade, signaling the need for reforms.

Current State of the Sector

• In the 2024-25 Budget, Rs 4,417 crore was allocated to the textile sector, including customs duty reductions to promote exports.
• Despite efforts, India’s share in global textile exports remains stagnant at 3.9%.

What Budget 2025 Could Offer

• GST Reductions: Lower GST rates on essential garments to make clothing more affordable.
• Support for Domestic Production: Expanded incentives under the Technology Upgradation Fund Scheme (TUFS) to modernize the sector.
• Export Boost: Policies aimed at enhancing India’s competitiveness in global textile markets.

A Balancing Act: Growth with Affordability

The affordability crisis in food, housing, and clothing has far-reaching implications for India’s economy. Budget 2025 must strike a balance between providing immediate relief and implementing long-term solutions.

Expected Measures

1. Tax Relief for the Middle Class: To boost disposable incomes and increase spending power.
2. Enhanced Employment Opportunities: Investments in infrastructure and manufacturing to generate jobs.
3. Targeted Reforms: Addressing structural inefficiencies in key sectors like agriculture, housing, and textiles.

Finance Minister Nirmala Sitharaman has a daunting task ahead as public expectations soar. The spotlight is on Budget 2025 to deliver on promises of affordability, growth, and stability.