New Delhi: In the Union Budget for 2025-26, Finance Minister Nirmala Sitharaman unveiled a bold set of initiatives aimed at transforming urban infrastructure and enhancing the quality of life in cities across India. A major step towards solving housing challenges in urban areas, the government has earmarked Rs 10 lakh crore for the PM Awas Yojana Urban 2.0.
This ambitious project is set to benefit 1 crore families from the urban poor and middle class, with the government committing Rs 2.2 lakh crore in central support over the next five years. During her speech, Finance Minister Sitharaman said that the fund will be used to implement the proposals for cities as growth hubs, and creative redevelopment.
Here are the key highlights for urban sector budget
Revitalizing street market: Building on the success of the PM SVANidhi Scheme, the government plans to establish 100 weekly street food hubs (haats) every year in select cities for the next five years. This initiative aims to uplift local economies and create more opportunities for small vendors and entrepreneurs.
Smart city transit plans: Aiming to modernise urban transport, the government is rolling out transit-oriented development in 14 cities with populations exceeding 30 lakh. The development plans will focus not only on improving transportation networks but also on creating sustainable financial models to support the infrastructure.
Water and sanitation overhaul: To improve urban living conditions, the government is prioritising large-scale infrastructure projects to enhance water supply, sewage treatment, and waste management in 100 major cities. Collaborations with state governments and international bodies will also focus on using treated water for agriculture and replenishing local water sources.
Reforming rental housing market: With a focus on increasing rental housing availability, the government is working on new policies to make the rental market more transparent and efficient. This initiative aims to make it easier for individuals to find and secure rental accommodations in urban areas.
Stamp duty changes to support affordable housing: The budget encourages state governments to reduce stamp duties, especially for properties purchased by women. This is part of a broader effort to make housing more accessible and affordable for all.
The 2025-26 Indian Union Budget allocates Rs 10 lakh crore for urban development, focusing on PM Awas Yojana Urban 2.0, smart city initiatives, transit-oriented development, water and sanitation, street food hubs, rental housing reforms, and stamp duty cuts. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
