Ads Area

Budget 2025-26: Government Amplifies Infrastructure Investment with Record CapEx Allocation

The Union Budget 2025-26 underscores the Government’s unwavering commitment to infrastructure and economic development through a substantial increase in capital expenditure (CapEx). With a total allocation of ₹10.18 lakh crore, the budget seeks to accelerate economic growth, enhance employment opportunities, and fortify connectivity across various sectors.

Key CapEx Highlights & Strategic Initiatives

Strengthened Infrastructure Investment

The budget prioritizes robust funding for infrastructure, highways, and urban development. The focus on long-term capital investment is designed to drive job creation and catalyze sustainable economic expansion.

Interest-Free Loans to States for CapEx

  • ₹1.5 lakh crore allocated as interest-free loans to states for infrastructure projects.

  • Funding is contingent upon reforms in power, transport, and digital infrastructure, encouraging states to undertake progressive development initiatives.

Asset Monetization Plan 2025-30

  • The government has unveiled a ₹10 lakh crore asset monetization roadmap.

  • Key assets, including railways, highways, and airports, will be leased to private enterprises to mobilize capital for new infrastructure projects.

Urban Challenge Fund for Smart Cities & Urban Development

  • A ₹1 lakh crore Urban Challenge Fund has been established to support urban redevelopment, water & sanitation projects, and transport infrastructure.

  • The government will finance 25% of project costs, with the remaining 50% to be sourced from bonds, banks, and public-private partnerships (PPPs).

Jal Jeevan Mission Extended Until 2028

  • The initiative aims to achieve 100% tap water coverage in rural India.

  • Over 15 crore households have already gained access to potable water.

Enhancing Warehousing & Air Cargo Infrastructure

  • Strategic investments will be made in high-value perishable cargo warehousing.

  • Upgraded customs processing and air cargo facilities to enhance trade efficiency.

Public-Private Partnership (PPP) in Infrastructure Development

  • All infrastructure ministries are mandated to release a three-year pipeline of PPP projects.

  • States can leverage support from the India Infrastructure Project Development Fund (IIPDF) for project planning and execution.

National Manufacturing Mission

  • A structured framework to bolster MSMEs and large industries, fostering domestic manufacturing growth.

  • Policy incentives and supply chain integration to reduce import dependency and strengthen local production.

Sector-Wise CapEx Allocation & Impact

Roads & Highways

  • Extensive funding for highway expansion and expressway development.

  • Strengthening of rural road networks under the Pradhan Mantri Gram Sadak Yojana (PMGSY).

Real Estate & Urban Infrastructure

  • ₹1 lakh crore allocated to the Urban Challenge Fund for city redevelopment.

  • Government-backed affordable housing and smart city initiatives to encourage private sector participation.

Energy & Power Infrastructure

  • Investments in power distribution and renewable energy projects.

  • Incentives for states to reform power distribution mechanisms.

  • Focus on Nuclear Energy Mission and EV battery manufacturing incentives to reinforce India's energy security.

Railways & Metro Expansion

  • Large-scale investments in railway electrification and high-speed corridors
    .
  • Expansion of metro rail networks in Tier-2 cities to enhance urban mobility and decongestion.

Digital & Telecom Infrastructure

  • Accelerated expansion of 5G networks and rural broadband connectivity.

  • Public-private partnerships to extend the nationwide fiber optic network.

The Budget 2025-26 reaffirms the Government’s strategic focus on fortifying India’s infrastructure and fostering economic resilience. With increased capital expenditure and structured investments across pivotal sectors, the budget is poised to lay a robust foundation for long-term sustainable growth. The emphasis on asset monetization, urban transformation, and digital expansion positions India on a trajectory toward accelerated development and enhanced global competitiveness.

Post a Comment

0 Comments
* Please Don't Spam Here. All the Comments are Reviewed by Admin.

Top Post Ad

Below Post Ad

www.indiansdaily.com GLOBAL INDIAN COMMUNITY
🔔JOIN:    

Ads Area

avatar
EDITOR Welcome to www.indiansdaily.com
Hi there! Can I help you?,if you have anything please ask throgh our WhatsApp
:
Chat WhatsApp