India plans to increase spending on food, fertiliser, and cooking gas subsidies to Rs. 4.1 trillion ($47.41 billion) in FY25, an 8% rise to counter food and energy costs, government sources said.
Finance Minister Nirmala Sitharaman will present the budget on February 1, 2025 amid slowing economic growth. The rural economy shows signs of recovery, while urban sectors and corporate investments remain sluggish.
Subsidy Breakdown
- Food Subsidy: Expected to rise 5% to Rs. 2.15 trillion ($24.86 billion) due to higher rice procurement and storage costs.
- Cooking Gas Subsidy: Set to more than double to Rs. 250 billion ($2.89 billion) from 119 billion rupees ($1.38 billion).
- Fertiliser Subsidy: Likely to remain at Rs. 1.7 trillion ($19.66 billion).
Subsidies account for about 8% of India’s $557 billion annual expenditure. The finance, food, and fertiliser ministries have not yet commented on the allocations.
