The narrative for India’s infrastructure sector has shifted from recovery to rapid acceleration. Following the massive ₹11.21 lakh crore capex allocation in the previous fiscal, the industry is now looking to Union Budget 2026 for policy continuity and deeper structural reforms.
The expectation is not just for sustained spending but for a strategic pivot towards sustainable urban transformation. Leaders are calling for a renewed focus on water infrastructure, circular economy mandates, and technology-led operational efficiency. Highlighting this sentiment, Sunil Nair, CEO of Ramky Infrastructure Ltd., emphasizes the need for a balanced approach that aligns with the Viksit Bharat@2047 vision. The industry anticipates a capex hike to ₹12-13 lakh crore, with specific interventions in public-private partnerships (PPP) to drive execution in critical areas like sewage treatment and industrial connectivity.
Reflecting on the impact of last year’s infrastructure push, Sunil Nair, CEO, Ramky Infrastructure Ltd., highlighted expectations around continued investment in highways, water & wastewater projects, and urban transformation aligned with the Viksit Bharat@2047 vision. “India’s infrastructure journey has gained remarkable momentum, and what’s commendable is the government’s steadfast commitment demonstrated in the Union Budget 2025-26. Key initiatives included a massive ₹11.21 lakh crore capex allocation, fueling projects like the ₹1 trillion Urban Challenge Fund for cities as growth hubs and water sanitation, alongside the second Asset Monetisation Plan targeting ₹10 trillion for new builds. Outcomes have been tangible: accelerated progress on Bharatmala highways, 1,000+ railway station modernisations, and metro expansions, reducing logistics costs and boosting urban connectivity—evident in our own ₹215 crore sewage contracts in Hyderabad.
For Budget 2026, the sector anticipates sustained capex at ₹12-13 lakh crore with sharper focus on water infrastructure, including viability gap funding for PPPs in 7,000 MLD sewage treatment under Namami Gange and circular reuse mandates across urban areas. Enhanced support for HAM models in industrial parks, green bonds for STPs, and digital twins for O&M will accelerate nationwide execution. These steps will drive resilient growth, aligning with Viksit Bharat@2047 through sustainable urban transformation.”
