Union Budget 2025: ₹50.65 Lakh Crore Outlay to Fuel Sustainable Growth and Viksit Bharat Ambitions

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, sees a marginal increase in capital expenditure to ₹11.2 trillion for FY26. Though the rise is modest, it underscores the government’s intent to maintain infrastructure-led growth as a key driver of economic expansion.

Covering areas such as tax reforms, infrastructure investment, digitalization, women’s empowerment, Aatmanirbhar Bharat, and social welfare, the Budget outlines several transformative initiatives aimed at fostering growth, inclusivity, and sustainability. It underscores agriculture, MSMEs, investment, and exports as key drivers of development on the path to Viksit Bharat, fueled by reforms and guided by an inclusive vision. The Budget also reflects a balanced approach to road infrastructure, emphasizing sustainable funding, debt reduction, and strategic project execution to enhance connectivity and economic growth.

For FY25-26, total expenditure is estimated at ₹50.65 lakh crore, marking a 7.4% increase over the current fiscal. While the past 3-4 budgets have been capex-focused, this time, there is a significant stimulus in the form of tax benefits. As a result, investment is expected to shift from capex and infrastructure stocks to consumption-driven sectors. The capex outlay for FY26 remains nearly unchanged from FY25, which has disappointed investors and led to a sell-off in capex-intensive sectors.

The Budget estimates net tax receipts at ₹28.37 lakh crore, with a fiscal deficit target of 4.4% of GDP. Gross market borrowings are projected at ₹14.82 lakh crore, while ₹11.21 lakh crore (3.1% of GDP) has been earmarked for capital expenditure.

Prime Minister Narendra Modi hailed it as a "People’s Budget" that will boost savings and investment. He stated, “This budget represents the aspirations of 140 crore Indians and fulfills the dreams of every citizen. We have opened many sectors for the youth, empowering the common citizen to drive India's development. This Budget will act as a force multiplier, increasing savings, investment, consumption, and overall growth.”

Roads & Highways

The Indian government has reinforced its commitment to infrastructure development by allocating ₹2.87 lakh crore to the Ministry of Road Transport and Highways in the Union Budget for FY2025-26. This marks a 2.41% increase from the previous year, signaling a continued push for connectivity and economic expansion.

The National Highways Authority of India (NHAI) has received a boost in funding, with an allocation of ₹1.87 lakh crore, up from ₹1.69 lakh crore in the prior year. While the increase in capital expenditure reflects steady investment, some analysts view it as modest, impacting market sentiments and infrastructure-related stocks.

A notable shift in strategy is the government's decision to reduce NHAI's debt burden by discontinuing provisions for fresh borrowings in the upcoming fiscal year. This move aligns with a broader financial management plan aimed at ensuring sustainable infrastructure growth.

The Budget also highlights ambitious plans for expanding the road network, with 15 major projects worth ₹44,000 crore set to be awarded. These projects will cover 937 kilometers, enhancing regional connectivity and fostering economic development.

Asset monetization remains a priority, with a focus on leveraging road assets to fund a 50,000 km high-speed road network. This initiative is expected to attract private investments, drive infrastructure enhancements, and support long-term economic growth.

The Union Budget FY26 reflects a balanced approach to road infrastructure, emphasizing sustainable funding, debt reduction, and strategic project execution to pave the way for a more connected and economically vibrant India.

Railways

The Union Budget for FY26 has allocated Rs 2.55 lakh crore to the Ministry of Railways, maintaining the same funding level as the previous fiscal year (FY25). There are no significant reforms or increases in funding for key projects like gauge conversion and rolling stock improvements. The allocated funds will be used for crucial infrastructure initiatives, including track expansion, procurement of rolling stock, electrification, signaling upgrades, and station modernization.

Union Minister of Railways Shri Ashwini Vaishnaw described the Union Budget as "amazing" and expressed gratitude to the Prime Minister and Union Finance Minister for allocating Rs 2.52 lakh crore as gross budgetary support to the Ministry of Railways for the second consecutive year. He emphasized that the introduction of new trains and modern coaches would significantly benefit low- and middle-income passengers.

A major thrust of the railway development agenda is station modernization and the introduction of next-generation train services. These efforts aim to ease congestion, improve efficiency, and provide a more seamless travel experience for millions of commuters. The long-term vision aligns with India's ambitious target of achieving net-zero carbon emissions for the railway sector by 2030. The Budget also focuses on safety with an allocation of Rs 1.16 lakh crore for initiatives aimed at enhancing the safety of Indian Railways through various projects.

While the budgetary allocation remains static, the ongoing and planned initiatives reflect a determined approach to transforming India's rail network. With modernization at the forefront, Indian Railways is set to become a more efficient, sustainable, and future-ready transportation backbone for the nation.

Aviation

India's annual air passenger numbers have surpassed 350 million, making it the third-largest aviation market in the world. Over the past decade, domestic air passenger traffic has grown at an annual rate of 10-12%, while the number of airports has more than doubled to 159. The government is committed to developing 50 additional airports over the next five years. To meet rising passenger demand in the eastern region, greenfield airports will be developed in Bihar, alongside the expansion of Patna airport, and the establishment of a brownfield airport in Bihta.

The UDAN scheme has successfully operationalized 619 routes, connecting 88 airports across the country. Building on this success, a revamped UDAN initiative will be launched to further boost regional connectivity by adding 120 airports. The scheme will also focus on supporting helipads and smaller airports in remote, hilly, and aspirational districts, including the North Eastern region.

The government is also focused on upgrading air cargo infrastructure. India’s air cargo sector is growing at over 10% annually, with airport cargo handling capacity reaching 8.0 million MT in FY24. Special attention is being given to air cargo warehousing, particularly for perishables, which will open up greater market opportunities for Indian producers, enhancing both exports and domestic trade efficiency. Streamlining cargo screening and customs protocols will further boost efficiency and promote ease of doing business in the sector.

Rural Development

The Union Budget 2025-26 has allocated ₹1.88 lakh crore to the Rural Development Ministry, reflecting a 5.75% increase from the previous year. Finance Minister Nirmala Sitharaman announced that the ministry's budget stands at ₹1,77,566.19 crore, the same as in 2024-25. The flagship Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has been allocated ₹86,000 crore, maintaining last year’s funding level.

Among key initiatives, the Pradhan Mantri Gram Sadak Yojana received a significant boost, with ₹19,000 crore allocated; 58% higher than last year’s budget and 31% more than the revised estimate of ₹14,500 crore. The Pradhan Mantri Awas Yojana-Gramin (PMAY-G) has been allocated ₹54,832 crore, nearly matching last year’s ₹54,500.14 crore.

Urban Development & Real Estate

The Union Budget places a strong emphasis on urban infrastructure, housing, and investment, introducing several key measures that will impact the real estate sector. While there were no direct changes to property tax or home loan benefits, various initiatives aim to support urban development and housing.

In a push to strengthen urban infrastructure, the Union Budget 2025-26 has increased the allocation for the Housing and Urban Affairs Ministry by 18%, setting aside ₹96,777 crore up from ₹82,576 crore in the previous budget. The government also announced the creation of a ₹1 lakh crore Urban Challenge Fund to position cities as growth hubs, facilitate creative redevelopment, and enhance water and sanitation infrastructure, with ₹10,000 crore allocated for FY 2025-26. ₹10,000 crore has been earmarked for the Urban Rejuvenation Mission, which is being implemented in 500 cities, reflecting a rise from ₹8,000 crore last year.

No funds have been allocated for the Smart Cities Mission as the initiative is set to conclude in June this year. The Swachh Bharat Mission has retained its ₹5,000 crore allocation. In urban transport planning and capacity building, ₹133.10 crore has been allocated, marking an increase from ₹88.04 crore in the previous budget, supporting both metro and non-metro projects.

Building on the success of the Special Window for Affordable and Mid-Income Housing (SWAMIH), the government will establish SWAMIH Fund 2 as a blended finance facility with contributions from the government, banks, and private investors. This Rs 15,000 crore fund will focus on the expedited completion of an additional 100,000 housing units.

In terms of tax relief for residential property investors, taxpayers will now be allowed to claim the annual value of two self-occupied properties as nil, without the need to meet certain conditions. This change addresses the difficulties taxpayers have faced in the past. To further promote public-private partnerships in infrastructure, each infrastructure-related ministry will develop a three-year pipeline of projects that can be implemented under the PPP model. States will also be encouraged to adopt this approach and can seek support from the India Infrastructure Project Development Fund (IIPDF) to prepare PPP proposals.

Manufacturing

The Union Budget introduced a ‘National Manufacturing Mission’ aimed at promoting the “Make in India” initiative across small, medium, and large industries. This mission will provide policy support, execution roadmaps, and a governance and monitoring framework for both central ministries and states.

The National Manufacturing Mission will focus on five key areas: improving the ease and cost of doing business; developing a future-ready workforce for in-demand jobs; fostering a vibrant and dynamic MSME sector; ensuring access to technology; and producing high-quality products.

The Mission will support Clean Tech manufacturing, with a goal to enhance domestic value addition and develop the ecosystem for solar PV cells, EV batteries, motors and controllers, electrolyzers, wind turbines, high-voltage transmission equipment, and grid-scale batteries.

The Finance Minister highlighted initiatives for labour-intensive sectors, noting that the government will implement specific policies and facilitation measures to promote employment and entrepreneurship opportunities in these areas.

Maritime & Shipbuilding Infrastructure

The Union Budget 2025 introduced significant measures to strengthen India’s maritime sector and shipbuilding industry. A ₹25,000 crore Maritime Development Fund, with a 49% government contribution, will provide long-term financing for maritime projects. The Shipbuilding Financial Assistance Policy (SBFAP) has been revamped, extending customs duty exemptions on raw materials for an additional 10 years. To support the ship recycling industry, a new Shipbreaking Credit Note Policy will offer incentives based on the scrap value of vessels.

In a major boost for financing, large vessels will be granted infrastructure status, facilitating access to external commercial borrowings and insurance funds. The government plans to develop shipbuilding clusters to enhance India’s global market share, which currently stands at just 0.06%, with the long-term vision of positioning the country among the top five shipbuilding nations by 2047.

Exports

The FM identified exports as the fourth engine of growth, emphasizing that the Export Promotion Mission, driven collaboratively by the Ministries of Commerce, MSME, and Finance, will help MSMEs tap into international markets. She also proposed the creation of a digital public infrastructure, ‘BharatTradeNet’ (BTN), which will serve as a unified platform for trade documentation and financing solutions.

The FM outlined that support will be provided to strengthen domestic manufacturing capacities, ensuring our economy’s seamless integration with global supply chains. She further announced that the government will assist the domestic electronic equipment industry in capitalizing on opportunities presented by Industry 4.0. A National Framework has been proposed to promote the establishment of Global Capability Centres in emerging tier 2 cities.

Irrigation and Water Infrastructure

The Union Budget allocated ₹8,259.85 crore to the Pradhan Mantri Krishi Sinchai Yojana (PMKSY), reaffirming the government’s commitment to improving irrigation facilities and enhancing water-use efficiency in India’s agriculture sector.

The Department of Water Resources, River Development, and Ganga Rejuvenation received an allocation of ₹25,276.83 crore, marking an increase from the revised estimate of ₹21,640.88 crore. For the Namami Gange Mission-II, ₹3,400 crore has been earmarked for cleaning and rejuvenating the Ganges River, up from ₹3,000 crore in the previous year.

Tax

Announcing key tax measures, Finance Minister Sitharaman revealed that individuals earning ₹24 lakh or more annually could save ₹1.10 lakh in income tax, while those earning ₹12 lakh will pay no tax, benefiting by ₹80,000 under the new regime starting next fiscal. She also announced plans to introduce a new Income Tax Bill in Parliament next week, replacing the six-decade-old Income Tax Act of 1961.

INDUSTRY REACTIONS ON UNION BUDGET 2025

While the Budget introduces new ideas for sustainable growth and development, reactions have been mixed: some experts appreciate its forward-looking approach, while others opine that allocations for key sectors like roads and railways have remained relatively flat.

Sajjan Jindal, Chairman and Managing Director, JSW Group

The Budget provides more money in the hands of the middle class which will help boost consumption. A change in tax slabs is a welcome step. The government has maintained its thrust on capex though the spend of Rs 11.2 lakh crore is lower than a spending of around 13 lakh crores that I was hoping for, based on the past trend. But still, capex spend is at a robust level and will give a boost to the core sectors.

The boost to MSMEs, by increasing investment and turnover limits and expanding credit guarantees, is a very important step towards increasing the contribution of the manufacturing sector to our economy. Creation of a 3-year pipeline for PPP projects and making the PM Gati Shakti data available for private sectors are important steps that will help the industry plan and execute large projects.

S Sathish, Partner and National Sector Leader- Industrial Manufacturing, KPMG in India

Budget 2025 is clearly a “Make in India” enabling budget, aimed at triggering manufacturing activity to the next level and also strengthen the key enablers which can complement the manufacturing sector growth. The key announcements on the National Manufacturing Mission, domestic capacity building for global supply chain integration, focus on electronic / battery manufacturing, customs exemption for critical materials, centers of excellence, skill building and enhanced credit limits for MSMEs will ensure that India rises as a most favoured nation for manufacturing to tap global opportunities.

Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE

The Union Budget 2025-26 is a significant step towards accelerating growth and inclusive development, targeted at maintaining economic growth, upgrading infrastructure, facilitating ease of doing business, strengthening social schemes and the healthcare segment while addressing MSMEs.

The capex allocation and ₹1.5 lakh crore in interest-free loans for states will be a booster for building a future-ready economy that thrives on both physical and digital infrastructure. Investments of ₹1 lakh crore in the Urban Infrastructure Development Fund will ignite urban transformation, create thousands of jobs, and empower local industries.

The vision of Cities as Growth Hubs will boost economic growth and uplift urban living. The framework for setting up GCCs in tier 2 cities is a brilliant move to reduce migration pressures while promoting local development. The announcement of CoE in Artificial Intelligence for Education with a total outlay of INR 500 crore will be a big boost for the digital economy.

The designation of 50 cities as global hubs for tourism, spirituality, and medical services is projected to uplift regional economies and prioritize local infrastructure development.

The SWAMIH Fund 2, with an allocation of ₹15000 cr, will facilitate the completion of an additional 100,000 housing units. The announcement of the National Geospatial Mission is a promising move towards modernizing India's land records. The personal taxation reforms, designed to increase disposable income for the middle class, are expected to stimulate consumption and, consequently, drive broader economic growth.

Virendra D. Mhaiskar, Chairman & Managing Director, IRB Infrastructure Developers

The Budget reflects a genuine commitment to spur growth by placing more money in the hands of people. This is a tough act but a right one to keep the country geared up to tackle global uncertainties. With corporate balance sheets fairly strong, the government wants the private sector to step up on capex and asset monetization target of 10 lakh crores, which will make significant opportunities available for private sector to deploy resources. The continuation of tax exemption to sovereign wealth funds and pension funds sends the right message to global companies that they are welcome to participate in the Indian growth story.

Kavita Shirvaikar, Managing Director, Patel Engineering

Budget 2025 places a strong focus on the PPP model to enhance the private sector's role in the country's development. It is anticipated that the coordinated three-year project pipeline of the government, which is supported by ministries and the India Infrastructure Project Development Fund (IIPDF), will not only speed up the completion of projects but also sustain private sector participation. The cooperative framework in which states are encouraged to bid for PPPs is considered an important step towards efficiency and faster infrastructure development in the country.

The launch of the second Asset Monetization Plan, with ₹10 lakh crore earmarked for reinvestment, underscores the commitment to leveraging existing assets to fund new projects. Sharing PM Gati Shakti data with private players will help improve project planning and execution, and minimize inefficiencies in resource utilization. With these initiatives, the PPP model is well positioned to take a significant lead in the fast-tracking of India's infrastructure development, and drive economic growth.

Dimitrov Krishnan, Managing Director, Volvo CE India

“The Budget continues the focus on capex spend and puts more money in the hands of the middle-income group using tax relief as the means. This will provide a fillip to demand growth and employment, while also being fiscally responsible.

The Budget is also very inclusive as most sections of society and sectors of the economy (including Manufacturing, MSMEs, Agri, Startups, Tourism, Skilling, Training in AI), have been provided support for growth or transformation. FDI in insurance, EoDB with rationalization of import duties & other provisions, the nuclear energy mission for 100GW energy, India Post as logistics organization leveraging last mile connectivity, and personal income tax changes are some other highlights.

Infra & CE segments should continue to see further equipment demand growth with Capex allocation of 11.2 lakh crore in the coming year. Rs. 10 lac crore of national monetization pipeline over the next 5 years will provide a huge boost to private investment, helping the government to focus and spend more on social aspects of health, education and skilling.

Deepak Shetty, CEO & Managing Director, JCB India

The Budget takes a comprehensive approach, laying the groundwork for a robust, resilient economy in our journey towards 'Viksit Bharat’. Focusing on four powerful engines—Agriculture, MSMEs, Investment, and Exports—will drive growth across all sectors. Strengthening the rural economy will help reduce inflation, while increased agricultural investment will grow it further.

Strategic support for MSMEs will foster innovation and position them as key players in making India a global supply chain hub. The focus on new airports in the Northeast and the State Infra Ministries being encouraged to seek support from the India Infrastructure Project Development Fund (IIPDF) scheme to prepare PPP proposals, reinforce the government’s commitment to building infrastructure.

Investments in technology and AI could transition India from a service provider to a solution provider on the global stage. Execution will be key, but overall, this Budget strengthens India's potential as a global economic powerhouse.

Deepak Garg, Managing Director, SANY India & SOUTH ASIA

The launch of the Export Promotion Mission, coupled with sector-specific targets and digital public infrastructure for international trade, is a forward-thinking approach to elevate India's global presence in manufacturing. This initiative aligns with our commitment to support domestic manufacturing, in joining global supply chains, and fostering a competitive and sustainable growth trajectory.

The focus on infrastructure development, including 50 years of interest-free loans and PPP incentives and the Rs 10 lakh crore asset monetisation plan will significantly boost the construction and heavy machinery sectors. The Rs 1.5 lakh crore allocation will foster growth and investment, while the emphasis on skill development will drive innovation

Amit Gossain, Managing Director, KONE Elevators India

The launch of the National Manufacturing Mission is a significant step toward making India a global manufacturing hub. By improving the ease and cost of doing business, investing in a future-ready workforce, supporting MSMEs, and ensuring access to advanced technologies, this initiative will strengthen domestic manufacturing, boost exports, and drive economic growth.

The Budget’s focus on infrastructure development, including better regional air connectivity and investments in critical minerals, will further support urban expansion and modernization. Tax cuts will increase disposable income, giving a much-needed boost to the real estate sector and fueling demand for housing and commercial spaces.

We are optimistic that these measures will create new opportunities across industries, enhance economic resilience, and accelerate India’s journey toward becoming a global powerhouse in manufacturing and infrastructure development.

VG Sakthikumar, CMD, SCHWING Stetter India

The Budget sets a progressive path for infrastructure expansion, emphasizing investments in road, airport and rail projects while enhancing Public-Private Partnerships (PPP). The ₹1.5 lakh crore interest-free loan for states will accelerate development and boost economic growth.

A major highlight is the plan to connect 120 new airports over the next decade, improving regional connectivity, trade, and mobility. The Budget also strengthens 5.7 crore MSMEs, which contribute 36% to manufacturing and 45% to exports, by expanding credit support for micro enterprises.

This Budget fuels the Make in India initiative, driving construction and manufacturing industry growth, generating employment, and reinforcing India’s economic resilience, while unlocking new opportunities for sustainable development and prosperity.

Shalabh Chaturvedi, MD, CASE Construction Equipment – India & SAARC

The Union Budget reflects a strong commitment to inclusive and sustainable growth. The substantial increase in funding for key infrastructure projects, NIP extension, bridging the rural-urban divide, and enhanced allocations urban infrastructure set the stage for new opportunities in Construction Equipment Industry. The ₹2.87 lakh crore allocation for road transport and highways is a significant investment that aligns with our mission to strengthen India's infrastructure growth.

The emphasis on National Centers of Excellence for Skilling and vocational training is a welcome move, ensuring that India is future-ready by integrating innovation, technology, and workforce development. With initiatives like the National Manufacturing Mission, 50,000 Atal Tinkering Labs, and Centres of Excellence in AI, the government is fostering a robust ecosystem that promotes growth, upskilling, and employment generation.

Sandeep Singh, Managing Director, Tata Hitachi

Budget 2025 has taken steps in the right direction by bringing in measures to drive economic growth by putting additional disposable income in the hands of the taxpayers to spur both investment and consumption. This should support demand for both goods and services, giving a fillip to expanding capacity and industrial investment.

The expansion of limits defined for MSMEs is a welcome step, as the various benefits will be available to a wider gamut of enterprises - spurring both growth and employment. The focus on manufacturing continues with the Manufacturing Mission to boost Make in India and Aatmanirbharta. The increase in seats in IITs will further boost availability of skilled manpower to the industry.

The increasing establishment of GCCs in India has caught the attention of the government and the enabling framework for promotion in tier 2 cities which will bring jobs and growth to the hinterland. The setting up of the Committee on Regulations is a very important step in the direction of “Ease of doing business.” The sustained high allocation to key infrastructure drivers like the railways and roads and a substantial increase for housing and Jal Jeevan mission, shows the focus on Capex which will enable continued growth of the construction equipment industry.

Sorab Agarwal, Executive Director, ACE

Anchored in the vision of a self-reliant and Viksit Bharat, the Modi 3.0 government’s full budget provides a robust impetus to the National Manufacturing Mission, reinforcing India's position as a global industrial powerhouse. By accelerating the Make in India initiative and prioritizing skill development for Industry 4.0, the budget strategically strengthens India’s role in the global supply chain. The roadmap to a USD 5-trillion economy is reinforced with pro-growth measures, while targeted tax relief for the salaried class is set to fuel consumption and investment—key multipliers for sustained economic momentum. Additionally, tax benefits will improve take-home income, boosting financial well-being. At ACE, we are committed to driving this transformation, fully aligning with the government’s goal of increasing manufacturing’s GDP contribution from 17% to 25% and catalyzing industrial expansion at scale.

Dharmesh Surelia, CMD, Macons Equipments

The Budget, with its infrastructure allocation, including the ₹1 lakh crore Urban Challenge Fund, demonstrates a strong government commitment to urban development. Increased spending on roads, metro expansion, and smart city projects will drive demand for construction equipment. Incentives for sustainable infrastructure and digital transformation will also accelerate the adoption of advanced, tech-driven equipment.

With higher infrastructure outlays, equipment manufacturers can expect steady growth, improved order volumes, and stronger aftermarket opportunities. This Budget lays a solid foundation for the construction equipment sector to grow alongside India’s rapid urbanization and infrastructure modernization.

Dheeraj Panda, MD, Ammann India

The Budget lays a strong foundation for India’s infrastructure growth. The government’s focus on Public-Private Partnerships (PPP) and a ₹1.5 lakh crore capital expenditure outlay for states will accelerate highway expansion and modernization. The new Asset Monetization Plan, reinvesting ₹10 lakh crore into infrastructure, will further enhance funding availability for road projects.

We welcome the emphasis on digitalization through PM Gati Shakti and BharatTradeNet, which will improve logistics efficiency and streamline project execution. The plan to boost tourism infrastructure will drive demand for better road connectivity, reinforcing the role of highways in economic growth. With regulatory reforms simplifying project approvals, Ammann India is optimistic about a more seamless and rapid implementation of road construction projects.

Pankaj Sharma, Managing Director, K2 Infragen

The 2025 budget is a transformative step towards realizing the Viksit Bharat vision. The focus on PPP will encourage greater private-sector involvement, leading to faster project execution, improved efficiency, and innovative solutions. Access to data and maps from the PM Gati Shakti portal will enhance project planning, improve efficiency, and strengthen Public-Private Partnerships.

The allocation of ₹1.5 lakh crore as interest-free loans to states, along with the ₹10 lakh crore Asset Monetization Plan, is set to accelerate capital investments, generate employment, and stimulate economic growth across sectors.

Initiatives like the Urban Challenge Fund will promote the development of sustainable and smart cities. Reforms in the power sector are expected to improve energy reliability and strengthen the financial health of utilities, while the extension of the Jal Jeevan Mission will contribute to long-term water security for millions. The Nuclear Energy Mission will also play a crucial role in expanding India’s clean energy capacity.

We also expect the emphasis on shipbuilding, maritime infrastructure, and regional air connectivity to boost logistics efficiency, reduce costs, and open new trade routes. These measures shall create a strong business environment for companies to thrive and contribute to India’s infrastructure-led growth story.

Yancharla Rathnakara Nagaraja, MD, Ramky Infrastructure

The Budget’s emphasis on PPP through the creation of a 3-year pipeline of projects for each ministry reflects a clear intent to leverage private sector involvement in infrastructure development. This is further supported by the India Infrastructure Project Development Fund (IIPDF), which encourages state governments to seek assistance in project execution.

The ₹1.5 lakh crore outlay for interest-free loans to states underscores the importance of supporting regional development and incentivizing reforms. The second Asset Monetization Plan (2025-30) will unlock value from public assets, reinvesting capital into further infrastructure projects.

The ₹1 lakh crore Urban Challenge Fund is dedicated to urban reforms, focusing on improving governance, municipal services, and urban planning. The modified UDAN scheme, which aims to enhance regional connectivity, alongside the development of greenfield airports, will significantly improve transportation infrastructure.

The support for projects like the Western Koshi Canal ERM Project demonstrates the commitment to improving agricultural infrastructure. Providing private sector access to the PM Gati Shakti portal data is a crucial step toward optimizing project planning and execution, fostering greater collaboration between public and private entities in shaping the future of India’s infrastructure.

Manoj Kumar Singh, Director General, Digital Infrastructure Providers Association (DIPA)

Budget 2025-26 presents a comprehensive vision for accelerating India's journey towards Viksit Bharat through transformative digital infrastructure development and economic reforms. The reduction in basic customs duty on carrier-grade Ethernet switches from 20% to 10%, bringing them at par with non-carrier-grade switches, is a significant step that will resolve industry disputes while reducing infrastructure costs. This, combined with BharatTradeNet's introduction as a unified digital platform, demonstrates the government's commitment to building robust digital infrastructure and enhancing our global trade competitiveness.

The focus on MSMEs is particularly noteworthy, with the enhanced credit guarantee cover from ₹5 crore to ₹10 crore for micro-enterprises, injecting an additional ₹1.5 lakh crore credit over the next five years. The National Manufacturing Mission's support for clean tech manufacturing, especially in EV batteries and solar panels, along with customs duty exemptions on 35 additional goods, showcases a clear push towards sustainable development and domestic manufacturing capabilities.

The comprehensive power sector reforms and increased state support for infrastructure development will strengthen the foundation needed for digital expansion, particularly in rural areas. The light-touch regulatory framework and emphasis on ease of doing business create an enabling environment for private sector participation and innovation. These progressive measures, coupled with the new Asset Monetization Plan 2025-30, create a robust ecosystem for sustainable growth in the digital infrastructure sector.

Harsh Pareek, Regional Sales Director, India and SAARC, Trimble Solutions

With ₹1.5 lakh crore allocated as interest-free loans to states for infrastructure development and continued investment in highways, urban transport, and smart cities, the Union Budget 2025 reinforces the government’s commitment to modernizing India's infrastructure. The emphasis on digitalization and sustainable construction practices is a welcome move that will not only enhance project efficiency but also improve quality and reduce waste.

Arun Shukla, President & Director, JK Lakshmi Cement

As we continue to build a stronger future for India, the 2025 Union Budget offers a clear path forward, focusing on sustainable growth, affordable housing, and infrastructure development. The completion of 50,000 dwelling units in stressed housing projects and the ₹1.5 lakh crore allocation for infrastructure will bring the much-needed relief to middle-class families.

We are optimistic about the Rs 10 lakh crore asset monetization plan, which will infuse capital into new projects, sparking innovation across key sectors. The focus on expanding infrastructure through PPP models and streamlining trade and warehousing facilities will create a conducive environment for cement demand, driving sustainable growth in the industry.”

Prashant Sharma, President, NAREDCO Maharashtra

While the ₹1 lakh crore Urban Challenge Fund is a step in the right direction to transform cities into growth hubs, the sector was expecting incentives such as industry status, single-window clearances, and increased tax benefits for homebuyers.

The rationalization of TDS and the relief provided to the middle will further boost spending power, indirectly benefiting housing demand. A notable highlight is the progress under SWAMIH which has completed 50,000 homes in stressed projects and will deliver 40,000 more in 2025, easing financial strain on homebuyers. The ₹15,000 crore SWAMIH Fund 2 will accelerate the completion of another one lakh homes, boosting market sentiment.

The announcement of a new Fund of Funds (FoF) with an expanded scope and fresh contribution of ₹10,000 crore will have a spillover effect on the start-up ecosystem and may drive innovation in PropTech, enhancing technology-driven solutions in real estate and improving efficiency in project execution. However, we urge the government to consider targeted interventions to address liquidity concerns, expedite approvals, and create a more robust framework for real estate investments.

Rohan Khatau, Director, CCI Projects

The increased infrastructure spending and PPP initiatives will facilitate urban development. However, the real estate sector was expecting the much-needed reforms in stamp duty rationalization, higher home loan interest deductions, and incentives for rental housing. While the rationalization of TDS and higher exemptions for the middle class, it will provide liquidity, and a more direct stimulus to the sector with accelerated investment and demand. We hope the government considers mid-year policy interventions to support real estate growth.

Vikas Sutaria, Founder, Irah Lifespace

The Budget once again misses the opportunity to introduce dedicated incentives for NRIs and HNIs, who play a crucial role in the luxury housing segment. Streamlining taxation policies and easing investment norms for these investors could have significantly boosted investments in this segment.

The rationalization of TDS and tax relief for the middle class will improve disposable incomes, indirectly benefiting housing demand. The Urban Challenge Fund will help in urban renewal, but specific measures to encourage luxury and second-home investments were needed. While the government’s commitment to infrastructure and PPP-driven development is commendable, the lack of direct incentives for real estate is disappointing.

Abhishek Jain, COO, Satellite Developers Private Limited (SDPL)

The Budget's focus on infrastructure and PPP-driven urban transformation is a positive step, but the real estate industry was expecting more direct support. The rationalization of TDS and tax benefits for the middle class will improve disposable incomes, which could have an indirect positive impact on housing demand. However, critical issues such as liquidity constraints, high taxation, and policy bottlenecks remain unaddressed. A more comprehensive real estate policy would have further accelerated sectoral growth.

Dilip Oommen, CEO, ArcelorMittal Nippon Steel India

The Union Budget demonstrates the Government’s commitment to sustainable growth under the Viksit Bharat@2047 agenda. With ₹11.21 lakh crore allocated for capital expenditure, the focus on infrastructure will stimulate growth, especially in the steel sector. Actual spending from the committed outlay within the financial year will set the tone for immediate and future economic growth.

The additional focus on Nuclear Energy, with a target of 100 GW by 2047, is a decisive step in India’s green energy transition. This will help in driving the green transformation of the country and the steel industry.

The steel sector also stands to benefit from indigenous shipbuilding and marine development projects and enhanced credit availability for MSMEs, which will have access to financing for businesses involved in the construction and manufacturing sectors.

Gopi Krishna More, Managing Director, Torsa Machines

These are things I like about this Union Budget 2025: India's 2025 budget’s emphasis on infrastructure development, with significant allocations for roads, railways, and urban projects. Construction sectors benefit from increased funding for affordable housing and smart cities. To promote eco-friendly transport, incentives for biking infrastructure, including dedicated lanes and subsidies on electric bikes, are introduced. Lowering of tariffs on imported super bikes is a welcome move too. For the common man, tax reliefs and enhanced healthcare schemes aim to ease financial burdens. The middle class sees higher disposable income through revised tax slabs and housing loan interest deductions. Overall, the budget focuses on sustainable growth, improved connectivity, and inclusive development, aiming to boost economic recovery and enhance quality of life for all citizens.

Ashish Modani, Senior VP & Group Head, ICRA Limited

The Union Budget has maintained a healthy budgetary outlay towards capital expenditure at Rs 11.2 trillion in FY2026 BE, as compared to Rs 10.2 trillion in FY2025 RE, implying a growth of 10.1% YoY. Government’s focus on fiscal consolidation, while continuing its capex thrust augurs well for economy. The Budget has made substantial allocations and introduced several initiatives to boost the infrastructure sector in India. Healthy capital expenditure, focus on transportation and urban development, are expected to support the country's economic growth and development. The successful implementation of these projects will be crucial in achieving the desired outcomes and ensuring sustainable economic growth in the coming years.

Badal Yagnik, Chief Executive Officer, Colliers India

The Union Budget 2025-26 has continued to further the goal of ‘Viksit Bharat’ and ‘Sabka Vikas’ through transformative reforms across six key domains including urban & real estate development, power & mining sectors, financial services & taxation as well regulatory reforms.

Balanced regional growth across tier I & II cities will be driven by engines such as agriculture, MSMEs, investments and exports. The National Manufacturing Mission, guidance framework for GCCs, start-up focused AIF, SWAMIH 2 fund and Urban Challenge Fund, all hold potential to accelerate real estate growth.

The Budget has continued to focus on improving the ease of doing business through innovation, technological upgradation and sharing of data between public & private sector establishments. The extension of the SWAMIH fund is a much-expected move as several real estate projects continue to reel under stress due to funding constraints.

Rationalization of taxes and enhancement of exemption limits can boost disposable income, spurring consumption levels and real estate investments, particularly in residential real estate and alternate financial instruments such as REITs.

Shrinivas Rao, FRICS, CEO, Vestian

The Budget focuses on employment generation, boosting domestic consumption, and enhancing connectivity by concentrating on the rapid development of infrastructure and increasing disposable income of citizens. This will have a positive impact on increasing demand for all real estate asset classes. The allocation of INR 15,000 cr under the SWAMIH Fund for addressing liquidity issues of delayed housing projects, along with digitization of land records, are expected to strengthen homebuyers' confidence. Upgradation of infrastructure facilities for air cargo will multiply the demand for warehousing across the country and setting up GCCs in tier-2 cities will transform the real estate landscape of India.

Vinod Aggarwal, MD & CEO, VECV

This forward-looking and growth-oriented Union Budget reaffirms the government’s commitment to strengthening India's manufacturing sector and accelerate the transition to clean and sustainable mobility while bolstering India’s economic resilience.

The National Manufacturing Mission and the emphasis on Clean Tech Manufacturing, including National Critical Minerals Mission, particularly for EV batteries, motors, controllers, and high-voltage transmission equipment, will provide a significant boost to ‘Make in India’ efforts.

The rationalization of custom duties on key raw materials and the reduction of inverted duty structures will also enhance cost-effectiveness in domestic manufacturing. The duty exemption on capital goods for EV battery manufacturing is a welcome step toward accelerating India's electric mobility transition.

The adjustments in GST rates, incentives for electric vehicle adoption, import duties on components, increased allocations for infrastructure development, particularly in roads and transportation, will directly fuel demand for commercial vehicles. Provisions for working capital support, technology upgradation funds, and easier credit access will strengthen the MSME ecosystem.

Ashish Bhutani, CEO, Bhutani Infra

The Budget reinforces India’s commitment to urban transformation and infrastructure growth. The ₹1 lakh crore Urban Challenge Fund and ₹1.5 lakh crore interest-free loans for capex will unlock new opportunities for real estate developments. The push for PPP projects and the upcoming Investment Friendly Index for states signal a more structured and investor-friendly approach.

For Noida, a thriving commercial hub, these initiatives will drive demand, attract global investors, and accelerate sustainable urban development. The new valuation rule for self-occupied properties boosts real estate sentiment, while the hike in the TDS threshold for rent to ₹6 lakh eases compliance and benefits both landlords and tenants.

This Budget lays a strong foundation for future-ready cities, making real estate and infrastructure a key driver of India’s growth story. We look forward to leveraging these opportunities to create world-class commercial spaces.

Pravin Kumar Agarwal, MD & Chairman, Garuda Construction and Engineering

The Budget presents a robust framework for infrastructure development that will catalyse India's growth story. The Asset Monetization Plan 2025-30's target of Rs 10 lakh crore, and the Rs 1.5 lakh crore support to states for capital expenditure demonstrates the government's commitment to infrastructure development. The SWAMIH Fund-2's allocation of Rs 15,000 crore for completion of residential projects and the Urban Challenge Fund of Rs 1 lakh crore for city development are particularly promising. These measures, combined with regulatory reforms and the emphasis on ease of doing business, create an enabling environment for the construction sector.

Dr Niranjan Hiranandani, Chairman, NAREDCO & Hiranandani Group

From the vantage point of the real estate and infrastructure sectors, the Budget FY26 sets the stage for transformative growth. Central to this Budget is its continued focus on infrastructure enhancements. Notably, it incentivizes the purchase of a second flat, encouraging real estate investments.

Introduction of SWAMIH Fund 2.0 seeks to alleviate the burden on homebuyers by delivering stalled projects, while the hike in TDS on rentals up to ₹6 lakhs promises to bolster rental investments. By expediting mergers and acquisitions, the Budget aims to initiate new real estate projects under innovative business models.

Establishment of new centers of excellence will help bridge the widening talent chasm. However, the concern over inadequate long-term investment allocation remains a hindrance for achieving the ambitious Viksit Bharat growth targets.

The middle class stands to benefit immensely from tax incentives, which are expected to generate a positive demand curve in the real estate sector. Emerging growth corridors featuring new projects with integrated amenities are poised to attract even more buyers.

The Budget also puts a spotlight on labor-intensive sectors to ensure that quality, productivity, and competitiveness are enhanced. The Finance Minister's announcement of a ₹1 lakh crore Urban Challenge Fund, aims to address land and development obstacles, foster robust social infrastructure in key urban centers, and drive infrastructure development. The focus on new airports, shipping ports, and inland waterways is set to transform India into a competitive logistics hub, reducing product costs and boosting economic efficiency.

However, it is worth noting that the Budget has not taken significant action towards uplifting affordable housing, a segment crucial for inclusive growth and economic stability.

Maulesh Desai, Director, CareEdge Ratings

‘The government extends support of Rs 1.5 lakh crore to states with a three-year project pipeline, driving infrastructure development and boosting growth. Capital outlay for infrastructure is proposed to be reduced by around Rs 1 lakh crore as compared to the last budget. The enhanced focus on public private partnership for developing infrastructure and asset monetization target of Rs10 lakh crore over 2025-230 are welcome.

Avneesh Sood, Director, Eros Group

The Budget brings significant relief to the middle class, making homeownership more accessible and real estate investment more attractive. The ₹1 lakh crore Urban Challenge Fund will drive city growth, improving infrastructure and livability. First-time homebuyers will benefit from enhanced tax incentives and relaxed TDS thresholds on rent. Affordable housing initiatives, including the completion of 40,000 units under the SWAMIH Fund, will provide more options for aspiring homeowners. The rationalization of property tax provisions simplifies compliance, easing the burden on buyers. Streamlined REIT regulations will enhance investment opportunities, offering the middle class new avenues for wealth creation.

With a focus on infrastructure, fiscal stability, and housing accessibility, the Budget strengthens consumer confidence and supports real estate as a key driver of economic growth.

Himanshu Kapadia, Cluster Head of India, Middle East and Turkey, Master Builders Solutions

Budget 2025 brings a positive outlook for the construction industry. Initiatives like the Udaan scheme, economic corridors, industrial parks, and interest-free infrastructure loans to state governments are steps in the right direction. Increased capital expenditure and policy support for urban development will further drive growth in the sector. However, execution efficiency remains key. In 2024-25, infrastructure spending fell short of the allocated budget. This year, the government must ensure timely project execution and full utilization of funds to maximize economic impact and sectoral growth.

Venkatesh Gopalakrishnan, MD, Shapoorji Pallonji Real Estate

Budget 2025 introduces strategic measures to strengthen India's housing and urban development sectors. The sustained support for Pradhan Mantri Awas Yojana, alongside the government maintaining its robust capital expenditure trajectory with an increased allocation of ₹11.21 lakh crore, demonstrates a comprehensive approach to infrastructure development. This consistent capex commitment, coupled with expanded infrastructure investments, creates a strong foundation for real estate growth.

The Income Tax reforms, which include relief on incomes up to ₹12 lakhs for the middle class, put more disposable income in the hands of the middle class, enabling them to direct funds toward both housing investments and consumer spending. The Budget's focus on sustainable construction practices positions the sector for long-term growth by aligning with global environmental standards. These coordinated policy measures enhance market dynamics by expanding participation across income segments while fostering sustainable development practices.

Narayan Saboo, Chairman, BigBloc Construction

The focus on consumption-driven growth, coupled with strategic spending, is expected to provide a much-needed push to the economy, although we were little disappointed with no major tax reliefs for MSMEs. Overall, it is a steady and practical budget aimed at sustaining momentum without major surprises. The Budget outlines a long-term path for fiscal consolidation while delivering a significant boost to individual taxpayers by raising the exemption limit. This move is expected to stimulate domestic consumption, addressing the ongoing economic slowdown.

The government has not clarified its plans for increased infrastructure spending and other growth-oriented expenditures. There is no mention of last year’s capex shortfall, which is a notable omission. While the Budget does not introduce any groundbreaking measures, it provides a stable framework to support MSMEs and economic activity.

Amit Sharma, MD & CEO, Tata Consulting Engineers

The Union Budget delivers a transformative push across key sectors, reinforcing India's commitment to sustainable growth and self-reliance. The National Manufacturing Mission’s focus on cleantech industries, including solar PV cells, EV batteries, electrolysers, and grid-scale batteries, will strengthen domestic value addition and position India as a key player in global clean energy supply chains. Investments in power transmission and distribution, along with electricity distribution reforms, will modernise the sector and ensure financial stability for Discoms.

Infrastructure remains a key driver of economic growth, with ₹1.5 lakh crore in long-term interest-free loans to states and ₹25,000 crore for maritime expansion, strengthening India’s connectivity and trade competitiveness. The extension of the Jal Jeevan Mission, the ₹1 lakh crore Urban Challenge Fund, and affordable housing initiatives will enhance urban living standards.

The Critical Minerals Development Policy, alongside customs duty exemptions on essential resources, ensures a secure supply chain for high-tech industries, supporting India’s ambitions in advanced manufacturing and clean energy. Green bonds and hydrogen R&D incentives further reinforce our commitment to a net-zero future.

Rajesh Shah, CMD, Euro Panel Products

The inroads made at the Union Budget 2025 uniquely positions the Indian manufacturing, construction and building materials industries for robust growth. The National Manufacturing Mission will provide critical policy support to various industries, reinforcing India's commitment to becoming a global manufacturing leader. The Urban Challenge fund worth INR 1 lakh crore to redevelop cities positions the building materials and construction industry in a favourable position.

The emphasis of each infra ministry to come up with a 3-year list of PPP projects will be an era-appropriate move, furthering the National Manufacturing Mission and Make in India initiatives. These will enable industry stakeholders to scale operations, enhance efficiency, and drive innovation — directly translating to India attracting greater investments, creating high-value jobs, strengthening supply chains and boosting export.

Umesh Chowdhary, Vice Chairman & MD, Titagarh Rail Systems

The Union Budget 2025-26 reinforces the government’s commitment to strengthening India’s rail infrastructure and operational efficiency. The ₹2.9 lakh crore allocation, a 12% increase from last year, supporting 300 new Vande Bharat trains, modernization of 1,200 stations, 100% route electrification, and bullet train expansion, will drive key developments.

Investments in freight corridors and AI-driven Kavach safety systems will enhance logistics and passenger safety, while the focus on rail MRO capabilities ensures long-term reliability. Export-driven initiatives under the National Manufacturing Mission and Export Promotion Mission will bolster India’s global competitiveness, opening new avenues for manufacturers and aligning with the Viksit Bharat vision.

Lalit Parihar, Managing Director, Aaiji Group

The Union Budget emphasizes economic expansion, infrastructure growth, MSMEs, and middle-class welfare, offering substantial relief to taxpayers. Raising the exemption limit will boost disposable income, enhancing housing affordability and driving real estate demand. Increased infrastructure spending and the Rs. 1 lakh crore Urban Challenge Fund will transform cities into growth hubs, fostering redevelopment and strengthening water and sanitation systems. These measures aim to stimulate domestic consumption, address the economic slowdown, and create a business-friendly environment. Overall, the budget takes a decisive step toward urban transformation and sustainable economic growth.

KK Agarwal, CMD, CJ Darcl Logistics

The focus on strengthening the shipping sector through the ₹25,000 crore Maritime Development Fund, along with the expansion of the Tonnage Tax Scheme to inland vessels, is commendable. These initiatives will enhance port connectivity and streamline maritime operations. The government’s plan to establish a digital public infrastructure, BharatTradeNet (BTN), to simplify documentation in international trade is another significant step.

Efforts to bolster domestic manufacturing capacities, integrate the Indian economy with the global supply chain, and support the private sector with data and insights from PM Gati Shakti are initiatives that will provide a strong boost to both domestic and international trade.

Ashish Sikka, Chief Strategy Officer, Ecom Express Limited

Key reforms in the logistics sector, such as the BharatTradeNet, will streamline processes, reduce bottlenecks, and enhance transparency, improving efficiency for quick commerce and e-commerce. Support for the Make in India initiative will drive domestic manufacturing, further increasing demand for tech-driven logistics. The push for AI-driven solutions in predictive analytics and route optimization will further enhance supply chain efficiency.

Shashi Kiran Shetty, Founder and Chairman, Allcargo Group

The ₹25,000 crore Maritime Development Fund marks a transformative step, underscoring the government’s commitment to positioning India as a global shipbuilding powerhouse, although this may not be enough to compete with China, and other ship building nations. This strategic investment, coupled with an emphasis on port-led growth and enhanced logistics, will create significant growth opportunities and drive employment generation by fostering an ecosystem similar to that of the automobile sector. The ₹1.5 trillion infrastructure allocation is a major boost, ensuring improved connectivity—a key enabler of economic growth.

Rizwan Soomar, CEO & MD, DP World Middle East North Africa, and India Subcontinent

The Union Budget will significantly enhance the ease of doing business, workforce skilling, and manufacturing competitiveness with its continued focus on developing maritime infrastructure, domestic air connectivity, dedicated rail freight corridors (DFCs), and large-scale port modernization. The government’s commitment to inland water transport through the Tonnage Tax Scheme will provide a more sustainable and cost-effective mode of cargo movement.

The decision to share PM Gati Shakti data with private companies is a welcome move that will drive investment and improve efficiency in infrastructure development. Access to comprehensive project data will enable better planning and execution, fostering growth across sectors.

Dikshu C. Kukreja, Managing Principal, CP Kukreja Architects

The launch of the Urban Challenge Fund, with an allocation of ₹1 lakh crore, will transform our cities into thriving, inclusive, and resilient centers of economic activity. This initiative fosters a more structured and progressive approach to urbanization by providing incentives for planning, urban land reforms, municipal services, and governance.

The Budget's emphasis on regulatory ease through initiatives such as the Investment Friendliness Index and the High-Level Committee for Regulatory Reforms will simplify procedures, enhancing the effectiveness and adaptability of urban planning and development.

Ashwin N Sheth, CMD, Ashwin Sheth Group

The government’s focus on resolving stressed housing projects and boosting infrastructure development is a welcome move. The completion of 50,000 housing units, with another 40,000 set to be delivered by 2025, will provide relief to homebuyers. The launch of SWAMIH Fund II, with a ₹15,000 crore blended finance facility, will further accelerate the completion of 1 lakh units.

The focus on urban infrastructure development will certainly boost real estate. A dedicated push for skilling initiatives in construction, real estate, and hospitality will equip the workforce with industry-relevant expertise. These forward-looking measures will reinforce confidence among homebuyers, investors, and industry stakeholders, paving the way for sustained economic growth.

With the revised classification of Income Tax slabs, a greater flux is expected to be observed in consumer spending, eventually providing an impetus to overall economic spending and reduced inflation, resulting in lowering of interest rates.

Sudhir Pai, CEO, Magicbricks

The government’s plan to develop 50 top tourist destinations will boost local economies and drive real estate growth. Improved infrastructure and rising tourism are increasing demand for residential, commercial, and hospitality properties, making these areas prime investment hubs.

Lifestyle destinations like Goa, Nainital, and Dehradun are already witnessing strong buyer interest, as investors explore opportunities for long-term gains, holiday homes, and short-term rentals. The trend highlights a growing preference for second homes that double as income-generating assets, further fueling real estate expansion in these high-demand locations.

Vivek Bhatia, MD & CEO, TKIL Industries

Budget 2025-26 prioritizes reforms in manufacturing, mining, power, and skill development along with improving ease of doing business. These sectors will be key drivers of growth, infrastructure development, governance improvements, and sustainable development for the country.

Announcement of a National Manufacturing Mission is a significant step in strengthening the Make in India initiative. This will drive clean-tech manufacturing, bolstering the ecosystem for solar cells, EV batteries, wind turbines, and more.

The ₹1.5 lakh crore allocation for 50-year interest-free loans is set to accelerate infrastructure development. These strategic measures will position India as a rising global manufacturing hub, seamlessly aligning with its green energy and economic ambitions. The initiatives on tax rationalisation will give a boost to the consumption economy. We eagerly anticipate the forthcoming policy on mineral recovery, which will play a pivotal role in driving sustainable industrial growth.

Brij Bhushan Agarwal, Vice Chairman & MD, Shyam Metalics

As Budget 2025 plans revolve around national growth and getting new opportunities, it brings new initiatives like The National Manufacturing Mission while greatly focusing on PPP. It aims to strengthen the manufacturing section of India, thus improving policies with the help of governance systems, making sure ‘Make in India’ remains a priority. Public-Private Partnership on the other hand aims to use the expertise and spending of the private sector by quickening the construction of major projects like roads, bridges and urban development areas.

This plan will not only attract investment and increase the demand for steel but will also increase industrial activity in the region. However, the Steel sector needs to evolve towards safer and more advanced methods of production. Increased infrastructure will directly allow the steel sector to increase its production output.

Ronak Morbia, CMD, ArisInfra Solutions

"Budget 2025 reinforces India's commitment to infrastructure development through PPP, with each ministry proposing three PPP projects and ₹1.5 lakh crore allocated as interest-free loans for capital expenditure. The provision of term loans up to ₹20 crore for MSMEs is a crucial step in enabling small businesses to scale operations. We believe that the government's focus on infrastructure and credit access will further strengthen the role of MSMEs, paving the way for economic resilience and expansion.

Sebi Joseph, President, Otis India

The Budget lays a strong foundation for India’s next phase of growth, with a sharp focus on agriculture, infrastructural expansion, digital transformation, and sustainable development. The reforms on personal income tax are going to drive consumption. The vision of Sabka Vikas over the next five years will be instrumental in driving balanced growth across industries.

The thrust to further ‘Make in India’ through a National Manufacturing mission, building national centres of skilling and for excellence in AI, are progressive measures. Encouraging private-public partnerships in building the infrastructure is commendable. Continued attention to enhance connectivity across the country through operationalisation of new airports will boost the economy. The urban challenger fund would create new city growth hubs.

Siddharth Vasudevan Moorthy, Managing Director, Vascon Engineers Ltd.

We applaud the government's focus on infrastructure development, a key driver with significant positive implications for the real estate sector. The proposed ₹1.5 lakh crore interest-free loans to states and the ₹10 lakh crore capital infusion will catalyze new projects and urban redevelopment. Support for affordable and mid-income housing, coupled with mining sector reforms, will further bolster industry growth.

The ₹15,000 crore allocation through SWAMIH for the swift completion of one lakh dwelling units via blended finance offers much-needed relief to homebuyers. Incentivizing technology adoption through grants, tax benefits, and partnerships, particularly for digital tools like AI and blockchain, will be crucial for scaling operations within the real estate sector. These measures, combined with income tax relief, are expected to boost homebuyer confidence and stimulate demand. Furthermore, increased infrastructure spending on roads, highways, smart cities, and urban development will significantly drive demand for EPC services. The enhanced PPP model and streamlined project approvals will empower EPC firms to execute projects more efficiently, reducing bottlenecks and improving growth and profitability. We are eager to contribute to this growth and deliver high-quality infrastructure aligned with these strategic advancements.

Subhash Sethi, Chairman, SPML Infra Limited

The Union Budget 2025-26 perfectly aligns with the vision of Viksit Bharat @2047, laying a strong foundation for India’s infrastructure growth. It prioritizes sustainable and modern infrastructure, driving economic resilience, digital transformation, water and wastewater development, and clean energy initiatives.

With an allocation of INR 11.21 Lakh Crore, the government reinforces its commitment to infrastructure expansion. A new asset monetization plan will reinvest INR 10 Lakh Crore into new projects, supported by a three-year PPP pipeline to boost private sector participation. The INR 1.5 Lakh Crore in interest-free loans to states will accelerate capital expenditure, while the INR 1 Lakh Crore Urban Challenge Fund will transform cities into growth hubs.

Water infrastructure remains a key focus, with INR 74,226 Crore allocated, including INR 67,000 Crore for the Jal Jeevan Mission, extending the mission until 2028 for clean tap water connections to all rural households. Another INR 25,276.83 Crore is designated for water resource management and the rejuvenation of the Ganga River. The budget also emphasizes renewable energy and digital transformation as drivers of future-ready infrastructure. The Clean Tech Manufacturing Mission, backed by the National Manufacturing Mission, will focus on EV batteries and renewable energy technologies, enhancing domestic production, reducing import dependency, and fostering innovation in sustainable energy.

At SPML Infra, we remain committed to strengthening India's future through robust water infrastructure and sustainable energy solutions. This budget sets a clear path for economic growth, job creation, and inclusive, sustainable development.