Finance Minister Nirmala Sitharaman announced transformative infrastructure initiatives in Union Budget 2026, prioritizing future-ready development in Tier II and Tier III cities with populations above 5 lakh. Public capex surges to ₹12.2 lakh crore for FY 2026–27, sustaining momentum from ₹11.2 lakh crore.
Financial Innovation for Asset Recycling
Dedicated REITs accelerate monetization of CPSE real estate assets, generating fresh capital for reinvestment. The Infrastructure Risk Guarantee Fund offers calibrated partial credit guarantees to lenders, mitigating construction risks and boosting private infrastructure participation.
City Economic Regions and Coastal Connectivity
₹5,000 crore over five years develops City Economic Regions as vibrant growth hubs with integrated planning. The Coastal Cargo Promotion Scheme doubles inland waterways and coastal shipping share from 6% to 12% by 2047, slashing logistics costs through sustainable maritime routes.
Multi-Modal Connectivity Revolution
New initiatives include Seaplane Viability Gap Funding, Dankuni-Surat dedicated freight corridor, 20 National Waterways, seven high-speed rail corridors, and Regional Centres of Excellence for skilled manpower. These measures unlock economic potential across hinterlands while building climate-resilient transport networks.
