Budget 2025: Deloitte urges big push for infrastructure, FTAs, and energy security

In its pre-budget expectations, Deloitte has called for a continued push toward social and physical infrastructure, free trade agreements (FTAs) with countries such as Oman, Peru, the UK, and the European Union, among others, and a focus on energy security.

“The government has increased its budgetary allocation over time to develop physical and social infrastructure. This has led to a decline in logistics costs (from 10% of GDP in 2013 to 8.9% in 2022) and improved women's participation in the labour force (from 23.3% in 2018 to 37% in 2023). The upcoming budget is also expected to focus on these sectors,” said Rumki Majumdar, economist, Deloitte India.

“Within infrastructure, we expect a shift in allocation priorities, with greater emphasis on improving ports and shipping, energy—particularly green and sustainable energy—and urban infrastructure. The government is also expected to continue prioritising expenditure on health, education, and skilling in the social sector,” Majumdar added.

Deloitte highlighted reviving merchandise exports, which contracted by 3% in FY2024, as a key challenge and called for tapping new export destinations through FTAs. “To achieve its $1 trillion export target by 2030, India must create a clear roadmap. We expect the government to soon finalise FTA negotiations with Oman, Peru, the UK, the European Union, Chile, the South African Customs Union, and the Gulf Cooperation Council,” Majumdar said.

“This could boost exports in these regions amid global uncertainties. The government is also expected to expedite digital networking initiatives, such as the Trade Connect platform, to facilitate connections between exporters and international trade counterparts,” she added.

Deloitte’s third key budget recommendation relates to energy. “As the fastest-growing nation, India must prioritise energy security and self-reliance while accelerating the transition to alternative, cleaner energy sources,” Majumdar said.

“We anticipate a comprehensive overhaul of the power supply ecosystem through energy reforms addressing legacy issues. Green mobility and renewable energy sources are also expected to receive a significant boost as the government focuses on developing supporting infrastructure and accelerating the uptake of PLI schemes for solar photovoltaic modules and chemical cells,” she added.