Budget 2026: India Doubles Down on Public Capex, Widens Infra Pipeline

• Budget 2026 proposes to raise capital expenditure to Rs 12.2 lakh crore in FY27, continuing a decade-long expansion in public investment.
• An Infrastructure Risk Guarantee Fund will provide partial credit guarantees to lenders, reducing project risk and borrowing costs for private developers.
• New dedicated freight corridors, 20 national waterways, and incentives for coastal shipping aim to boost transport infrastructure and lower logistics costs.
• Seven high-speed rail corridors are planned as "growth connectors," creating opportunities for civil works and specialized rail equipment.
• Urban infrastructure in Tier 2 and 3 cities receives focus with challenge-mode financing and incentives for municipal bond issuances.

Why It Matters: Budget 2026 reinforces India's infrastructure-led growth strategy with increased public capex and strategic financing.