As Budget 2025 comes into view for India, a report by Economic Times shows that environmental, social, and governance (ESG) considerations are going to be very crucial in the making of policy and investments. Against the background of a worldwide move toward supportability, all eyes are centered on India’s commitment to green development and mindful corporate practices.
Green Energy Thrust
The government has been forcefully advancing renewable energy by setting ambitious targets for solar, wind, and green hydrogen. Budget 2025 is expected to announce further incentives for clean energy projects in the form of tax benefits, subsidies, and policy support to companies investing in green technologies. One of the key focuses is also expected to be the continued expansion of electric vehicles and charging infrastructure.
Indian companies are increasingly being held accountable for their environmental and social impact. The Budget may propose tightening of ESG reporting requirements and compliance frameworks, encouraging businesses toward sustainable practices. Sectors like manufacturing, energy, and finance might see new regulations aligning with global ESG standards.
Sustainable Finance and Green Bonds
This would further encourage growth in sustainable financing, including green bonds and ESG-linked investments. The government can also announce incentives for companies that raise capital through green financing mechanisms. The government may also encourage the banks and financial institutions to increase their lending for climate-friendly projects by offering them incentives.
With growing pressure on waste management and reduction of carbon footprints, the government may come out with initiatives to encourage a circular economy. The sectors that are likely to get policy support for adopting recycling and sustainable production practices are plastics, packaging, and textiles.
Social and Governance Reforms
In addition to the environmental factors, there are also the social and governance aspects. One should expect policies to support gender diversity, workplace safety, and human rights within corporate governance. The companies will probably be nudged towards greater transparency in ESG disclosures and boardroom accountability.
As ESG considerations rise to unmistakable quality universally, Budget 2025 will lay the establishment for India’s long-term sustainable development. With a center on clean energy, capable commerce hones, and maintainable back, the approach that the government has taken is planning to play a characterizing part in forming India’s financial and natural future.
