Budget 2026–27: Infrastructure and jobs as drivers of growth

The government’s continued commitment to the fiscal glidepath while increasing capital expenditure to ₹12.2 lakh crore, strikes a careful balance between discipline and growth.

Public capital expenditure remains the principal economic multiplier with Investments in transport corridors, logistics networks, industrial clusters and urban infrastructure all designed to reduce transaction costs, improve productivity and crowd in private investment. This is particularly relevant as global firms diversify supply chains and seek destinations that offer scale, reliability and policy continuity. India’s push into semiconductors, capital goods, biopharma, electronics, strategic minerals and rare earth reinforces its ambition on de-risking supplies and growing exports The Budget has highlighted the need for cluster development of cities and urban infrastructure, particularly water, sanitation and wastewater management. By embedding water supply, sanitation, drainage and wastewater within broader urban infrastructure and financing frameworks, the Budget recognises that Reliable WASH systems underpin labour productivity, industrial efficiency, public health and real estate viability.