As the clock ticks down to February 1, 2026, all eyes are on Finance Minister Nirmala Sitharaman as she prepares to present her ninth consecutive Union Budget.
With India positioning itself as a “global economic powerhouse,” the stakes for the infrastructure sector have never been higher.
Industry leaders and experts are now making a bold appeal: they want the government to double the allocation for various infrastructure projects to ₹3 lakh crore to ensure the economy stays on a high-growth trajectory.
Infrastructure Outlay
The primary expectation for Budget 2026 is a significant scaling up of the momentum established in previous years. Experts are urging the government to double the specific outlay for infrastructure projects to ₹3 lakh crore in the upcoming budget speech.
This demand is largely driven by the success of last year’s initiatives. In the previous fiscal cycle, the government allocated ₹1.5 lakh crore specifically for interest-free loans to states to spur capital expenditure. Industry leaders believe that doubling this amount will:
- Accelerate the completion of landmark investments in highways and urban transport.
- Provide states with the financial muscle needed to implement localized reforms.
- Support the development of smart cities and modern logistics hubs.
Foundation Laid in Budget 2025
To understand why experts are pushing for such a massive increase, we must look at the record-breaking figures of the previous year. In Budget 2025, FM Sitharaman earmarking a staggering ₹11.21 lakh crore for India’s infrastructure needs. This was a step up from the ₹11.11 lakh crore allocated the year prior, showing a consistent commitment to asset creation.
Key highlights from the previous year included:
- 50-year interest-free loans for state-level capital expenditure.
- Prioritization of schemes like UDAN (regional airport development) and the Jal Jeevan Mission.
- The introduction of the Urban Challenge Fund to tackle city-specific infrastructure hurdles.
Roads, Highways & Steel
According to industry voices like Manish Garg, CEO of Interarch Building Solutions, domestic steel demand is projected to remain robust due to intense infrastructure and manufacturing activity.
FSimilarly, Mohit Jandu of J Infratech emphasizes the need for a refreshed National Infrastructure Pipeline and continued prioritization of roads and highways within the government’s capital expenditure.
AI & Digital Infrastructure
Physical infrastructure is no longer just about concrete and steel. Over the last year, India has significantly strengthened its AI footprint, which is now seen as a vital component of physical assets. Piyush Jha of GlobalLogic suggests that Budget 2026 should provide targeted policy support for:
- AI-enabled data centers.
- Robotics and edge intelligence.
- Incentives for AI adoption across traditional infrastructure to drive global competitiveness.
Logistics and Railways
Efficiency is the name of the game for the logistics sector. Shashank Agarwal from Salasar Techno Engineering notes that a sustained thrust on public capex is essential to convert India’s “population dividend into an economic advantage”.
Furthermore, there is high anticipation that the Railways may receive a mega capex boost to improve logistics efficiency and multi-year predictability in project pipelines.
Long-Term Operating System
A refreshing perspective coming from industry experts this year is the shift from “building” to “operating.” Kamal Pal Hoda, CEO of Bluspring Enterprises, argues that India’s next leap will be defined by how reliably we operate our assets.
He urges the government to recognize infrastructure not just as a one-time capital expenditure, but as a long-term operating system where success is measured by:
- Uptime and safety.
- Compliance and workforce capability.
- Real-world outcomes for the citizenry.
Opportunity for Growth
As India approaches the presentation of the 2026 Union Budget, the government has a strategic opportunity to amplify the nation’s growth engine. By potentially doubling the infrastructure allocation to ₹3 lakh crore, the FM can provide the stability and predictability that long-cycle projects require.
Whether it is through traditional roads and railways or the new frontier of AI-enabled data centers, the upcoming budget will likely determine how effectively India can transition into a global manufacturing and logistics hub.
The industry’s message is clear: sustained, predictable spending is the key to unlocking India’s true economic potential.
The Logical Indian’s Perspective
Doubling infrastructure allocation to ₹3 lakh crore is a vital step toward social progress. Beyond logistics, these investments must foster national harmony and dialogue.
True growth comes from bridging urban-rural divides through inclusive projects like the Jal Jeevan Mission. By prioritizing safety and workforce well-being, India can build a future rooted in kindness and coexistence, ensuring progress benefits every individual
