At the World Economic Forum in Davos in January, one of the big topics of conversation was India. The presence of India’s largest ever delegation was noticed, as was the activity of Team India’s dealmakers, who returned home with investment commitments to the tune of Rs 20 lakh crore (~US$230bn).

Like these deals at Davos, this year’s Union Budget is a strong statement of confidence in India’s future as a global economic force. Today, India ranks fifth in terms of world's nominal GDP and is set to overtake Japan and Germany and become the third largest global economy before 2030.

India is one of BHP’s most important markets, not only because of its size but because we recognise a shared vision for sustainable growth and the opportunities for high quality relationships with our customers, government and other partners. 

This Budget builds upon a decade-long program of initiatives and investment designed to unlock the economic capacity of the Indian economy and drive India’s global competitiveness. 

This reform-driven approach enhances India’s global competitiveness, attracts foreign investment, and supports domestic industries. The Budget reinforces confidence in India's long-term economic trajectory by fostering greater private-sector participation and ensuring investment in priority programs.

Policies such as Make in India and the Production-Linked Incentive (PLI) scheme have laid the groundwork for a robust industrial base, while record capital outlays for railways, roads, and urban development are set to generate significant multiplier effects across sectors. There are also new allocations such as the ‘Urban Challenge Fund’ further fuelling urbanisation. 

Steel is central to India's growth story, and the Budget reinforces the central role that steel will continue to play in India’s economy as the world’s second-largest steel producer – steelmaking is roughly 2% of India’s GDP – and one of the world’s largest consumers of steel.  

With ambitious plans to reach 300MT of steel-making capacity by 2030-31, the Budget reinforces the industry's role in infrastructure, real estate, and industrial expansion. By securing high-quality raw materials and expanding investments, India is positioning itself as a global leader in steel.

India’s growing demand for copper reflects its broader economic transformation.  India’s electricity consumption per capita currently stands at around one-sixth of Japan’s and one-fifth of China’s, and we expect its copper demand to grow five-fold over its pre-Covid volumes in the coming decades as electricity is made more accessible and demand for consumer goods grows on the back of India’s expanding middle-class.

Data centres, a key priority of the Budget, will be a major driver of copper demand too. India’s rapidly growing data centre market is expected to more than double in value to nearly US$12 billion by 2032. Copper will be required to both transport the electricity to power India’s new fleet of data centres, and to build the centres themselves. India enjoys a number of competitive advantages, including lower construction costs for data centres relative to global peers, significant publicly backed projects including MeghRaj and IndiaAI mission, and the availability of a skilled workforce.

India’s rapidly growing urban population and strong per-household economic growth will mean a greater demand for crops. The Budget’s measures to further support agriculture, including the flagship PM Dhan-Dhanya Krishi Yojana, as well as ongoing fertiliser subsidies for Indian farmers, mean India will continue to be a globally significant market for potash and other fertilisers.

Also notable is the Budget’s support for greater uptake of nuclear energy in India. The ambition for 100GW of nuclear generation capacity by 2047, as well as the goal of developing a number of next generation small nuclear reactors by 2033, are laudable. Encouraging greater private sector involvement in developing India’s nuclear industry is a necessary step in allowing India to realise its net-zero goals and will position India as a leader in demonstrating the key role of nuclear energy to a low-emissions economy.

Budget 2025 is more than just a fiscal plan—it is a strategic vision for India's future. By strengthening resource acquisition, enhancing infrastructure, advancing clean energy, and supporting industrial expansion, India is laying the groundwork for long-term economic success. For global partners and investors, the message is clear: India’s best days aren’t just ahead—they are unfolding now.