Union Budget 2026: Infra sector seeks higher allocation, policy push to speed up projects

With the Union Budget for FY 2026–27 around the corner, the infrastructure sector is seeking higher government spending and policy support to accelerate project execution and sustain growth.

Industry representatives point out that while capital expenditure has risen over the past few years, execution challenges persist, with many large-scale infrastructure projects facing delays and escalating costs.

To overcome these hurdles, the sector is seeking a 10–15 per cent increase in allocations for urban infrastructure and core public assets, including highways, railways and airports.

Stakeholders are also advocating a shift in procurement practices, calling for reduced reliance on lowest-bid contracts. They argue that giving greater weight to technical capability, quality standards and past execution performance would help ensure timely completion and better asset creation.

In addition, the industry is pressing for greater infrastructure development in tier-two and tier-three cities to ease congestion in major metros and support more even economic growth across regions.

The sector maintains that stronger budgetary support, quicker execution and more flexible tendering norms in the upcoming Budget could help drive infrastructure-led growth and strengthen India’s long-term development trajectory.

Finance Minister Nirmala Sitharaman will present her ninth Union Budget on February 1.