Budget may pitch ₹25,000 crore risk fund for infra

The initiative is expected to ease financing risks for banks and financial institutions by encouraging higher credit flow at competitive rates and enabling them to take larger exposures to infrastructure projects.

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India's capex target for FY26 is at ₹11.21 trillion.

(ISTOCKPHOTO)

Experts say the fund could serve as a vital credit enhancement tool, provided its risk pricing and underwriting are managed effectively.

India’s capital expenditure target for FY26 stands at ₹11.21 trillion, or about 3.1% of GDP, compared with ₹11.11 trillion, or roughly 3.4% of GDP, in the previous year’s Budget.

Experts say external risks remain a key dampener for funding large infrastructure projects.