Union Budget FY 2026-27: Big Push for Infrastructure to Drive Growth & Investment
The Union Budget 2026-27 places strong emphasis on public capital expenditure as a catalyst for logistics efficiency, urban development, and industrial expansion, with the objective of crowding in private investment and strengthening India’s growth engine.
Key Highlights:
- ₹12.2 lakh crore public capital expenditure allocated in FY27 to sustain infrastructure creation momentum
- Seven High-Speed Rail corridors to be developed to enhance inter-city connectivity and economic integration
- 20 new National Waterways to be operationalised, boosting inland water transport and logistics efficiency
- Focused infrastructure development in Tier II & Tier III cities (population above 5 lakh) as emerging growth centres
- City Economic Regions (CERs) to be created with ₹5,000 crore per region over five years, under a challenge-based, reform-linked financing model
- Infrastructure-led regional development to support manufacturing clusters, services hubs, and urban economic regions
Impact:
These measures aim to strengthen urban and regional ecosystems, improve connectivity, reduce logistics costs, and position infrastructure as a key driver of sustainable and inclusive economic growth.
