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The Union Budget 2026–27, presented on 01 February 2026, places infrastructure development at the core of India’s economic strategy, positioning it as a key driver of growth, employment, investment and connectivity under the vision of Viksit Bharat.

Key Infrastructure Announcements in Budget 2026
Record Capital Expenditure
Capital expenditure increased to ₹12.2 lakh crore for FY 2026–27
Continued focus on long-term asset creation and economic multiplier effects

Transport & Logistics
Expansion of roads, highways and urban infrastructure
New Dedicated Freight Corridor connecting eastern and western India
Strong push for National Waterways and coastal shipping to promote greener logistics

Private Investment & Asset Monetisation
Proposal to set up an Infrastructure Risk Guarantee Fund
Encouraging private sector participation by reducing construction-phase risks
Faster asset recycling through REITs for CPSE-owned real estate

Urban & Regional Growth
Focus on Tier-II and Tier-III cities as emerging growth centres
Development of City Economic Regions (CERs) with dedicated funding
Improved last-mile connectivity to boost tourism and local economies

These measures aim to create a modern, resilient and future-ready infrastructure ecosystem, supporting sustained economic growth and employment generation across India.


#Budget2026 #UnionBudget2026 #Infrastructure #Capex #ViksitBharat #Highways #FreightCorridor #NationalWaterways #Tier2Cities #IndianEconomy

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00:00Infrastructure. During this past decade, our government has undertaken several initiatives for large-scale enhancement of public infrastructure, including through new financing instruments such as Infrastructure Investment Trust, INWITS, and Real Estate Investment Trust, RAITS, and institutions like NIIF and NABFID.
00:27We shall continue to focus on developing infrastructure in cities with over 5 lakh population, i.e. Tier 2, Tier 3 cities, which have expanded to become growth centres.
00:41Public capital expenditure has increased manifold from 2 lakh crore in 2014-15 to an allocation of 11.2 lakh crore in BE 25-26.
00:57In this coming year, that is, financial year 20-26-27, I propose to increase it to 12.2 lakh crores to continue the momentum.
01:10To strengthen the confidence of private developers regarding risks during infrastructure development and construction phase, I propose to set up an infrastructure risk guarantee fund
01:28to provide prudentially calibrated partial credit guarantee to lenders.
01:37Over the years, RAITS have emerged as a successful instrument for asset monetization.
01:45I propose to accelerate recycling of significant real estate assets of the CPSCs through the setting up of dedicated rights.
01:55In order to promote environmentally sustainable passenger systems, we will develop seven high-speed rail corridors between cities as growth connectors.
02:09Namely, Mumbai to Pune, Pune to Hyderabad, Hyderabad to Bengaluru, Hyderabad to Chennai, Chennai to Bengaluru, Delhi to Varanasi, Varanasi to Seliguri.
02:24The Indian banking sector today is characterized by strong balance sheet, historic highs in profitability, improved asset quality and coverage exceeding 98% of villages in the country.
02:53At this juncture, we are well placed to futuristically evaluate the measures needed to continue on the path of reform-led growth of this sector.
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