Infrastructure Spending to Drive Economic Growth in 2025-26 Union Budget: Expert Insights

Sandeep Gulati emphasizes the need for targeted measures, sustainability, and public-private partnerships to accelerate infrastructure development.

Mumbai, January 30: As India prepares for the 2025-26 Union Budget, infrastructure investment is set to remain a key driver of economic growth, with an emphasis on railways, defence, power, and data centers, according to Sandeep Gulati, Managing Director of Egis South Asia.

Gulati highlighted that the government’s allocation of ₹11.1 lakh crore for infrastructure in the 2024-25 budget has already laid a strong foundation, and further expansion in urban infrastructure, affordable housing, and water supply projects is expected.

“The upcoming budget should focus on stimulating investment across all sectors, providing the necessary push to drive demand and catalyze long-term growth. The government must reaffirm its commitment to the National Infrastructure Pipeline (NIP), including key initiatives like the PM Gati-Shakti National Master Plan and the Jal Jeevan Mission (JJM),” Gulati said.

Balanced Approach Needed for Sustainable Urban Development

While sectors such as roads, railways, and power receive significant attention, Gulati advocates for a more balanced approach that incorporates sustainable urban infrastructure and eco-friendly construction practices.

🏗 Key Focus Areas for 2025-26 Budget:
✔ Urban Infrastructure Growth – Expansion of smart cities, integrated transportation systems, and resilient urban planning
✔ Affordable Housing – Strengthening of Pradhan Mantri Awas Yojana (PMAY)
✔ Sustainable Cities – Continued investment in Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

“We must explore new initiatives, such as incentives for green building materials and a comprehensive sustainability rating framework, to promote environmentally responsible urban development,” Gulati added.

Public-Private Partnerships (PPP) to Drive Sustainable Infrastructure

🔹 PPP models will play a crucial role in executing large-scale infrastructure projects.
🔹 Incentives for green infrastructure and smart city solutions can encourage private sector participation.
🔹 Renewable energy investments and technological advancements will further support India’s sustainability goals.

India’s $7 Trillion Economy Target by 2030 Requires Massive Infrastructure Investment

To achieve its $7 trillion economy target by 2030, India needs $2.2 trillion in infrastructure investment, reinforcing the multiplier effect of infrastructure spending—where every rupee invested contributes three times the impact on GDP.

With initiatives like ‘Make in India’ boosting domestic manufacturing, the demand for construction materials, machinery, and technological solutions across industries like automobiles, pharmaceuticals, and textiles is expected to skyrocket.

Conclusion: A Transformative Budget Ahead

The 2025-26 Union Budget is poised to accelerate India’s infrastructure growth, ensuring economic stability, urban transformation, and sustainable development. With the right policy measures and strategic investments, India is set for a new era of infrastructural and economic progress. 🚀