Budget 2026: The Union Budget 2026 for 2026-27 is approaching and market pundits are highly optimistic for the country’s energy and infrastructure sectors.
Over the last decade, the country has seen massive developments in the segments of infrastructure buildouts. The country, under the leadership of PM Narendra Modi and Nitin Gadkari, has doubled the length of national highways to build the world’s second-largest digital infrastructure ecosystem.
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It is expected that FY25-26 budget may see capital expenditures maintainable above 3 percent of gross domestic product (GDP). It is widely believed that the budget may focus on logistics, transportation and energy transition throughout the energy and infrastructure sectors.
Budget 2026-What’s Ahead?
It is highly likely that the Budget 2026 may focus more on a prominent strategic shift towards an urbanization powered growth cycle and not just on incremental capital.
Digitalization, urbanization and industrialization would place unprecedented demands and expectations on existing infrastructure systems. Many market experts believe the budget may be leveraged for accelerating the transition of India as a nation from mere asset creation to resilience, system efficiency, operational effectiveness and long-term competitiveness.
A steady increase in capital expenditure by around 10-14 percent would be helpful to drive growth without exceeding the fiscal goals of the government. The government may increase investment in water, renewable energy, urban infrastructure and digital/public tech infrastructure.
The National Logistics Policy and PM Gati Shakti platform may be utilized further to reduce the associated costs and impact the level of transformation that the country requires for achieving its Viksit Bharat 2047 initiatives.
