INFRA INJECTION

THE UNION BUDGET IS EXPECTED TO BOOST INFRASTRUCTURE SPENDING IN LINE WITH THE VISION OF MAKING INDIA A 7-TRILLION ECONOMY BY 20380. MODERNISING RAIL, ROAD AND AVIATION INFRASTRUCTURE IS LIKELY TO REMAIN TOP PRIORITY IN FY26

- BY RICHA SHARMA

IN ITS TWO previous terms, the Prime Minister Narendra Modi-led National Democratic Alliance government has prioritised expenditure on infrastructure development. So, hopes are riding high in the sector that the government will continue to tread this path as it presents the first full Budget of its third term.

Such optimism is not without reason. Finance Minister Nirmala Sitharaman said in her Budget speech last year, "We will endeavour to maintain strong fiscal support for infrastructure over the next five years, in conjunction with imperatives of other priorities and fiscal consolidation." The government allocated a record capital outlay of ₹11.11 lakh crore for infrastructure in Budget 2024-25.

Nearly half of that was set aside for road and railway projects-₹2.78 lakh crore for roads and ₹2.65 lakh crore for rail-signalling the sector's centrality in making India a $7-trillion economy by 2030. The focus on transport infrastructure is expected to continue with an estimated increase of 10% in Budget 2025-26.

The government will likely focus on improving road infrastructure in rural areas and smaller towns with increased spending on the Pradhan Mantri Gram Sadak Yojana. The Ministry of Road Transport and Highways (MORTH) is expected to see an increase in outlay.

On the rail front, the Indian Railways may tread a balanced path in this Budget-expanding the Vande Bharat brand of trains for longer distances and high-speed trains, while also increasing production of non-AC and unreserved coaches to cater to the masses.