Union Budget Bets Big on Infrastructure

New Delhi, India – Infrastructure has been positioned as the core part of India’s growth strategy in the Union Budget 2026-27, as Finance Minister Nirmala Sitharaman announced a steep jump in Government capital expenditure to INR 12.2 lakh crore. The increased allocation aims to expedite large-scale infrastructure as well as create jobs and maintain the economic momentum.

Introducing the Budget, Sitharaman announced that the Government is to set up an ‘Infrastructure Risk Development Fund’ to fast-track complex, big-ticket projects. This new wave of increased public investment is likely to be a major beneficiary of highways, ports, railways, and power infrastructure and create champion MSMEs.

The Finance Minister emphasized that the Budget balances fiscal prudence with growth imperatives, maintaining monetary stability while continuing a strong focus on public investment. She stressed that India should be firmly entrenched in the world markets and increase its exports and inflow of foreign investments to sustain its rising trade and investment demands.

Emphasizing the reform agenda of the Government, Sitharaman stated that over 350 reforms have been rolled out to increase productivity and create job opportunities and a more robust economy. The Reforms Express is well on its way, she said, adding that India’s journey towards Viksit Bharat would balance ambition with inclusion.

She noted that the Budget is anchored in three key ‘kartavya’, or duties—accelerating growth, fulfilling people’s aspirations through capacity building, and ensuring equitable access to resources across families, communities, and regions. Scaling up manufacturing in 7 strategic and frontier sectors, supported by cutting-edge technologies such as artificial intelligence, will be central to sustaining long-term growth.

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