In a decisive move to accelerate India’s economic growth, Finance Minister Nirmala Sitharaman unveiled a comprehensive infrastructure agenda in the Union Budget 2026-27, emphasizing sustainable development, regional connectivity, and enhanced private sector participation.
Record Public Investment in Infrastructure
The government plans to raise public capital expenditure to Rs 12.2 lakh crore, a significant jump from Rs 11.2 lakh crore in the previous fiscal year. Highlighting the long-term commitment, the Finance Minister noted that public capex has surged from just Rs 2 lakh crore in 2014-15, reflecting India’s consistent focus on building world-class assets that drive jobs, productivity, and connectivity.
Empowering Tier-2 and Tier-3 Cities
A key thrust of the budget is upgrading infrastructure in cities with populations exceeding five lakh. By focusing on Tier-2 and Tier-3 urban centres, the government aims to reduce pressure on metros, promote balanced regional growth, and unlock the economic potential of smaller cities.
Encouraging Private Investment
To boost private sector participation in large infrastructure projects, the Finance Minister announced the creation of an “Infrastructure Risk Guarantee Fund”. This fund will offer calibrated credit guarantees to lenders during the construction and development phases, de-risking investments and instilling confidence in developers and financial institutions.
Boosting Logistics and Multimodal Transport
The budget also focuses on improving freight efficiency and green logistics:
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Dedicated East-West Freight Corridor: A new corridor connecting Dankuni (West Bengal) to Surat (Gujarat) will streamline cargo movement, reduce road congestion, cut logistics costs, and enhance connectivity between industrial hubs.
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Inland Waterways: The government plans to operationalize 20 new national waterways over the next five years, starting with National Waterway-5 in Odisha, linking mineral-rich regions like Talcher and Angul with industrial centres such as Kalinganagar, and ports including Paradip and Dhamra.
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Ship Repair Ecosystem: Dedicated ship-repair hubs will be established in Varanasi and Patna, supporting inland vessel maintenance, creating skilled employment, and expanding river-based logistics along the Ganga-Brahmaputra network.
Vision for Viksit Bharat
These initiatives reflect a long-term vision of Viksit Bharat, integrating multimodal connectivity, investor-friendly measures, and urban-rural linkages. By combining infrastructure expansion with strategic risk mitigation and sustainable logistics, the budget seeks to lay the foundation for inclusive growth and global competitiveness.
With these measures, India is poised to enhance not only its physical infrastructure but also its economic resilience, regional equity, and environmental sustainability, positioning the country for robust growth in the decades ahead.