Budget 2025 expectations: A call for decisive action for disability inclusion

By Arman Ali
India has made strides in advancing disability rights, notably through the Rights of Persons with Disabilities Act (RPWD Act), 2016, and initiatives like the Accessible India Campaign. Yet, these efforts often feel like a proverbial drop in the ocean, highlighting the urgent need for a decisive shift in policy. Budget 2025 presents an opportunity to transition from a welfare-driven approach to an empowerment-driven model that positions disabled people as active contributors to India’s growth story.
Disability is not only a social issue but also a profound economic one. The Economic Survey 2023 estimates that India loses approximately Rs 4.5 lakh crore annually - about 4% of its GDP - due to the exclusion of disabled people from various spheres of society. With around 2.68% of India's population, or roughly 26 million people according to the 2011 Census, this represents a vast untapped potential.
However, despite increased allocations to schemes like the National Program for the Welfare of Persons with Disabilities, the Union Budget 2024-25 allocated only Rs 1,225.27 crore to the Department of Empowerment of Persons with Disabilities (DEPwD), reflecting a negligible 0.02% increase from the previous year. This allocation is based on outdated Census and National Sample Survey data, which underreport the true extent of disability in India. Budget 2025 must address these gaps by ensuring adequate resources and updated statistics to align policy priorities with real-world needs. I outline some demands of the sector.
Cost of Disability & Need for Reforms
While India accounts for roughly 26 million persons with disabilities according to the 2011 Census, this demographic faces significant day-to-day challenges. The presence of a disability, coupled with environmental barriers, imposes a substantial financial burden on persons with disabilities. Based on my own experiences, I submit that the inherent costs associated with living with a disability are higher than those of ‘able-bodied’ individuals. For instance, with the largely inaccessible public transportation, I have to depend on my own vehicle and driver to commute in my daily life. Similarly, the cost of assistive technology, combined with a lack of specific policies for the insurance of these products, adversely impacts the overall cost of living. These costs are compounded by external obstacles, including inaccessible infrastructure, non-inclusive insurance policies, discriminatory attitudes, and ineffective implementation of laws. Overall, this affects access to employment, education, and all aspects of life for a person with a disability.
For instance, at NCPEDP we conducted a study on the status of higher education of students with disabilities in India. The study revealed that 68% of students report inadequate accessible public transport systems as a major challenge while commuting to college and institutions. Constant transition from one mode of transport to another leads to physical and mental fatigue and amounts to huge out-of-pocket expenditures for the students.
This is the plight for a metropolitan city like Delhi; imagine what it would be like for other cities. Despite the inherent challenges it poses, the high cost of living with a disability remains largely overlooked in India. Globally, countries like Australia, the USA, and the UK have provisions to address additional costs faced by disabled people in areas such as education, employment, and daily life. In India, accessible infrastructure remains scarce, and health insurance premiums are prohibitively expensive. Ayushman Bharat, for instance, inadequately covers disabled individuals, and private insurers often discriminate against the community.
Tax reforms have further exacerbated financial challenges. The previous regime allowed tax deductions of Rs 1.5 lakh for individuals with 80% or more disability and Rs 75,000 for those with less severe disabilities. However, the new tax regime introduced in 2024-25 has eliminated these benefits, leaving the community without essential financial relief.
Studies such as "The Direct Costs of Disability to Families in Tamil Nadu" reveal that government programs typically cover only 3-4% of the monthly costs required by disabled individuals for essential goods and services. Existing programs, like cash transfers and assistive device schemes, often take a one-size-fits-all approach, neglecting the diverse needs of the community. Moreover, nearly 61.7% of disabled individuals do not receive government aid due to obstacles in obtaining disability certification and other challenges.
To alleviate these financial burdens, there is a pressing demand for tax rebates under the new regime. Similar to Section 87A, which allows women to claim up to Rs 25,000 in tax rebates if their income is below Rs 7 lakh annually, a comparable provision should be extended to disabled individuals earning less than Rs 5 lakh annually.
Insurance
Another NCPEDP Study, "Understanding the Health Status of Persons with Disabilities in Bengaluru and Kalaburagi districts of Karnataka," found that only 34.8% of persons with disabilities in Kalaburagi availed healthcare services compared to 15.2% in Bengaluru, with significant barriers in awareness, accessibility, and affordability. Despite 69.8% in Bengaluru rating their health as average, 84.8% did not avail healthcare services. The report highlights the need for higher budgetary allocations to enhance accessibility, affordability, and sensitization of healthcare services, citing stark disparities, minimal use of assistive devices, and limited health insurance coverage.
Accessibility Mission
The disabled community’s foremost demand is a dedicated “Accessibility City Mission” at state and city levels, modeled after the Accessible India Campaign (AIC). Such a mission would foster competition among states and cities to enhance accessibility in public infrastructure, including transportation, buildings, and public spaces. The AIC aimed to make 50% of government buildings accessible by 2022, but only 28% of public buildings and fewer than 10% of transportation systems have been retrofitted, according to the Disability Rights Alliance Report. Budget 2025 must address this glaring gap by emphasizing Universal Design in all infrastructure projects and mandating accountability mechanisms to ensure compliance with the RPWD Act. The AIC has struggled with budget gaps, implementation delays, and dwindling app usage, leaving many cities lagging. It is also well-known that our rural areas too urgently require accessible infrastructure, given the large concentration of people there.
According to an analysis by the National Centre for Promotion of Employment for Disabled People (NCPEDP) in 2020, disability considerations often get overshadowed in urban development proposals, even in cities involved in both the Smart Cities Mission and the Accessible India Campaign. This disconnect highlights the need for stronger integration of disability considerations into urban development initiatives.
Assistive Devices, Digital Inclusion, National Survey
Globally, over one billion people require assistive products, yet access remains limited in low and middle-income countries. In India, only 1 in 10 disabled individuals has access to essential assistive technologies. Budget 2025 must include provisions to make assistive devices an integral part of health insurance coverage, recognizing them as essential tools for inclusion. This would empower disabled people to participate fully in education, the workforce, and civic life.
With increasing digitization, disabled individuals are at risk of being left behind. Many government services and private platforms are not designed with accessibility in mind. Budget 2025 should incentivize the development and integration of assistive technologies in digital platforms, ensuring universal access to essential services and enabling full participation in the digital economy.
Accountability and Targeted Action Plans
There is also a demand for greater accountability in government programs, similar to the Developmental Action Plan for Scheduled Castes (SC) and Scheduled Tribes (ST). This ring-fencing plan ensures that budget allocations directly benefit SC/ST communities rather than being diverted to unrelated projects. For instance, the USA allocates Social Security Disability Insurance (SSDI) with strict legal protections. A similar framework must be implemented for the disabled community to ensure that allocated funds are utilized effectively for their welfare and empowerment.
Budget 2025 is not just about fiscal allocations; it’s about setting priorities. This year, the government has an opportunity to make disability inclusion a cornerstone of India’s growth narrative, transforming the lives of millions and unlocking untapped potential. It is time we moved together ahead, recognize the potential of the disabled community, and collectively work toward enhancing the economic capacity of the country by making the right investment in the right projects.
(Arman Ali is the Executive Director of the National Centre for Promotion of Employment for People with Disability( (NCPEDP), a 28-year-old organization advocating for disability rights and inclusion)