BAJAJ BROKING
January 28, 2025
5 mins read
The development of smart cities and urbanisation are two key concerns for the Indian government, especially with the growing urban population. With the Union budget set to be presented on 1st February 2025, there are expectations from the government to address challenges like digital infrastructure, waste and water management, lack of affordable urban housing, public transport and the ongoing climate crisis.
The Union Budget 2025 is set to be presented by Finance Minister Nirmala Sitharaman on 1 February 2025. The budget this year is at a critical stage since not just India but the world might soon be witnessing the transition of India from being a developing country to a developed nation.
While the FM prepares the budget, it is expected that she’ll focus on economic growth, skill development, and infrastructure development.
While businesses across economic structures have their eyes set on the budget 2025, the common expectation is a special emphasis on smart cities. There is a general hope that the government will speed up infrastructural development, and certain key areas might receive special schemes. Let’s discuss some of the key expectations for the Smart cities and organisation sector.
Achieving planned development of smart cities and urbanisation is not only about promoting sustainable, liveable conditions but is also a boon for the growth of the Indian economy. Promoting the development of smart cities and urbanisation in India will help the country achieve its overall economic growth and revenue generation. Before we move ahead with the expectations these sectors have, let’s take a look at why experts are expecting the government to focus on smart cities and urbanisation:
Harnessing the Strength of Technology
A key aspect of smart cities lies in their potential to utilize interconnected technologies like the Internet of Things (IoT) that leverage the available data to provide valuable insight into the operation of every city. This helps in efficient planning, tracking development records, optimising resource management, and enhancing the overall organisation of the workforce.
Addressing Key Urban Challenges
Since the country has marked an unprecedented growth in the population moving to urban areas for employment and better life, this has created a huge burden on urban cities when it comes to managing resources, housing, social inequality, etc. The development of smart cities and urbanisation helps improve resource management and sustainable development.
Building a Better Life for the Workforce
Smart cities and urbanisation play a vital role in not only building sustainable living spaces but overall better living conditions with enhanced public safety, public health, sanitation etc that encourage people from all spheres to join the workforce more efficiently and safely.
Additional Read: Union Budget 2025: What to Expect for Real Estate
Now that we have established that the development of smart cities and urbanisation is vital for the country‘s economic growth, let’s move ahead and explore some of the key expectations that businesses from every sector of the economy and even citizens of the country are looking forward to:
Focus on Public Transport Development
It goes without saying that the urban population across the country has grown in recent years and is set to reach almost 675 million by 2035, thus making it important for the government to build efficient public transport. There are expectations that the budget 2025 will introduce funds and schemes for the development of railways, Metro, Rapid transit corridors and even enhanced pavements.
Additionally, there are also hopes that the government might introduce more electric vehicle charging stations to promote and encourage the urban population to switch to electric vehicles.
Addressing Affordable Housing Crisis in the Country
As the population grows in urban areas and smart cities the country is facing a major crisis in offering affordable housing. In developed cities like Mumbai, Delhi or Bangalore the cost of living is at an all-time high. It is obvious that there are expectations for more schemes like Pradhan Mantri Awas Yojana in the upcoming 2025 union budget. This would promote eco-friendly living and technology to advance dwelling ways.
Initiatives for Waste and Water Management
Waste and water management has emerged as another crisis that the government needs to deal with immediately to avoid any further degradation in the living conditions of the urban population. The government is expected to allocate funds for waste management and introduce better water management plans like sewage treatment plants. In smart cities, the government can introduce modern waste and water management plants like systems to track real-time water usage et cetera.
Did You Know? According to NITI Aayog’s Composite Water Management Index, 2019 India is facing severe scarcity with almost 600 million people suffering from high to extreme water stress.
Emphasis on Digital Infrastructure Development
The growth of digital infrastructure is a crucial part of smart cities and urbanisation. The union budget 2025 is expected to introduce better plans to implement 5G network connectivity across urban belts. In addition to this, data-driven governance is also expected to penetrate deeper into smart cities for efficient planning and better overall management.
Additionally, a blend of energy efficiency and renewable energy growth might also be a focus for the government in the upcoming budget to promote sustainable development. This could include subsidies for solar cells, wind blades and similar energy sources that reduce carbon footprint.
Looking into Climate Crisis
The growth in urban population has not only possessed a chat bench for expanding infrastructure but several other climate-related problems as well. The government and its union budget 2025 might introduce initiatives that would help smart cities tackle earthquakes, floods, drought or severe climate changes better.
A smart city is an organisation development in the country that has been a goal for the government for the past few years however despite several funds and innovative schemes being introduced there are certain challenges that these sectors continue to face like:
Access to Education
The overall access to education by the general population in urban cities is concerning. Even though governments in major cities have established government schools and other education facilities, the enrolment ratio in the schools compared to private schools continues to be low. For instance, only 36.5% of schoolchildren are attending government schools as per a report in 2024 and even in these ratios, the teacher-to-student ratio continues to be skewed.
Increased Unemployment Amongst Youth
India is facing a major unemployment crisis, despite being a country with a skilled young population. There has been marked growth in the number of young people moving towards urban cities for better job opportunities. It is concerning that the government has failed to provide adequate employment.
As per a recent report, the overall unemployment in urban cities in India rose to 8.1% in April 2024 which needs to be a centre of attention for the upcoming budget.
Addressing some of the key challenges faced by smart cities and urbanisation in the Union Budget 2025 will help the country achieve its economic goals at a much better pace. Let’s wait and see how far these expectations turn to reality when the budget is finally presented on 1st February, 2025 by the finance minster.
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Share this article: 
The cities and urbanisation sector is expecting the budget 2025 to take initiatives for the development of digital infrastructure, water and water management, better public transport and affordable housing for the urban population.
Smart cities and urbanisation development can benefit from the budget if adequate funds are allocated for infrastructural development, penetration of better technology like 5G networks, the introduction of data governance and management, et cetera.
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