India’s pursuit of becoming a $5 trillion economy has created optimism for the upcoming Union Budget to foster growth across critical sectors such as roads, energy, oil & gas, ports, logistics, and railways. As per industry experts, key priority areas include the expansion of the dedicated freight corridors, rapid road and port development, along with reducing the logistics costs. Focus on safety, technology, and sustainability initiatives will remain crucial. Further, the industry hopes for emphasis on domestic manufacturing and public-private collaborations to boost the production and contribute to the realisation of the Viksit Bharat 2047 vision. Industry experts share their expectations for the transportation and urban infrastructure sector…
Rizwan Soomar, Chief Executive Officer and Managing Director, DP World North Africa and India Subcontinent
“Investments in logistics infrastructure has a direct impact on growth of trade. Further, increase in capex outlay focused on a multimodal transport ecosystem, modernising physical, digital, and social infrastructure, will help in enhancing India’s connectivity to emerging and mature markets. Railways are the backbone of India’s logistics ecosystem. Look forward to the dedicated rail freight corridors operationalised to scale movement to/from ports and to connect production/consumption centres in India even more effectively. Similarly, the investments in infrastructure and facilities at ports and inland cargo terminals, too, must be encouraged and incentivised. Further digitalisation and automation of freight operations could be prioritised to improve efficiency and reduce the cost of logistics. Sustainability is a vital, underlying aspect of the infrastructure and logistics sectors. Promoting the use of renewable-energy shore power systems at India’s ports and adoption of electric vehicles at ports and logistics facilities through suitable tax incentives will enhance the country’s green credentials in trade. The Budget could also consider introducing new export incentives and strengthening the implementation of existing schemes which will reduce export costs and enhance global competitiveness of India’s goods.”
Hari Somalraju, Managing Director and Chief Executive Officer, Systra India
“Currently, India is in a transitional phase in the urban transportation segment, and the Union Budget 2025 would go a long way in defining its future. India currently has the third largest metro network in the world with over 1,000 kilometers of network across 23 cities and it aims to be second largest network with another 1,000 km in pipeline. It is crucial to implement transit-oriented development, which allows the reduction of traffic congestion by 30% and the increase in property values near transit stations by 20%. Delhi-Ghaziabad-Meerut Corridor as well as expansions like Delhi Metro Phase IV demonstrate the government’s commitment to effective urbanisation and mobility solutions.
In the railway infrastructure, there are expected plans and investments in high speed rails, new types of freight transport, renewable energy project plans and modernisation of stations. Implementing the Kavach anti-collision system and using AI and IoT on expanding them will improve safety and functionality. Furthermore, capacity building initiatives for PPP and terminal redevelopment by private players will complement the ecosystem.
The next budget is set to be a historical one for the metro and railway sectors particularly focusing on safety, technology, and sustainability. At SYSTRA India, we stand ready to support these initiatives to enable the paradigm shift in India’s transport system for the better to meet the requirements of the future.”
Y. R. Nagaraja, Managing Director, Ramky Infrastructure Ltd.
“In the last Union Budget, the government allocated Rs 11.1 trillion towards infrastructure development, significantly driving growth in the sector. To build on this momentum, we expect a further 30 per cent increase in infrastructure spending to Rs 18 trillion in the upcoming budget. This boost would be pivotal in moving closer to the World Bank’s projection of requiring $840 billion—approximately $55 billion annually—over the next 15 years to meet the demands of India’s rapidly expanding urban population.
The previous budget placed a commendable emphasis on sustainable urban development, with significant initiatives such as sewage waste management and treatment projects in over 100 cities. We urge the government to continue focusing on the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which plays a critical role in improving the quality of life for the underprivileged by providing essential civic amenities like water supply, sewerage, and urban transport. The Rs 80 billion outlay in the last budget was a step in the right direction, and we hope to see enhanced allocations this year.
Additionally, partnerships that drive sustainable infrastructure projects must be explored, along with incentives for the use of eco-friendly construction materials such as steel slag and recycled plastic waste for road development. Building on previous initiatives like the Rs 1.5 trillion interest-free loans to states for infrastructure expansion and the Phase IV launch of PMGSY to provide all-weather connectivity to 25,000 rural habitations.
We also propose the introduction of a sustainability rating framework to assess infrastructure projects on their long-term environmental impact and viability. Such a rating system would not only ensure sustainable development but also highlight areas of improvement for project optimisation. A continued focus on holistic urban development schemes and the Smart Cities Mission will be crucial in shaping India’s infrastructural landscape for a sustainable and inclusive future.”
Amit Sharma, Managing Director & CEO, Tata Consulting Engineers
“Tata Consulting Engineers (TCE) views the FY 2026 Budget as a key opportunity to advance India’s infrastructure, energy transition, and technological innovation. We expect continued capital investment in water supply, metro systems, and climate-resilient infrastructure, along with support for smart cities, transit-oriented development, and affordable housing.
A stronger push for renewable energy, including offshore wind, green hydrogen, and small modular reactors (SMRs), coupled with grid expansion, viability gap funding, and single-window approvals, will accelerate the energy transition. Strengthening nuclear energy through Bharat Small Reactors (BSR) and a contingency reserve for disaster management will bolster long-term energy security.
Modernising ports, promoting shipbuilding, and developing industrial clusters for semiconductors, EV batteries, and clean technologies will boost self-reliance and export competitiveness. Coastal industrialisation and inland logistics hubs will further drive efficiency and reduce costs. Smart infrastructure, digital twins, AI-driven mining, and integrated water management will be crucial for sustainability.
Skill development, gender diversity in engineering, and incentives for public-private partnerships will help bridge workforce gaps. Enhanced climate finance, including green bonds, R&D funding for energy storage, and low-interest loans for critical projects, will support India’s journey towards decarbonisation, innovation, and global leadership in engineering and consultancy.”
Girish Krishnaswamy, Assistant Vice President and Head Taxation, Bangalore International Airport Ltd
- Budget 2024 had allocated handsome funding of around Rs 11. Lakh Cr for Infra & Real estate Sectors. We expect the support continues with same fillip and increase to around Rs. 18 Lakh Cr
- There are only around active 150 airports which is quite inadequate to cater to 1.4 Billion Indians. Udaan Schemehas helped in connecting smaller cities to major destination by airports and helped middle class to start using aviation as mode of transport. A lot more needs to be done in this area.
- Bringing Aviation Turbine Fuel (ATF) into GST tax netwill be most revolutionary move aviation and airline sector bringing rate rationalisation and help airlines in bringing down their overall costs.
- Govt should encourage integration of advanced technologies like automated air traffic management systems and expanding Digi-Yatrato more airports will improve operational efficiency and enhance passenger convenience
- We request that Concessional customs duty benefit for importswhich has a sunset clause of Sept 2025 to be extended by another 5 years as many major infra projects are being taken up in the nation building journey.
- Airport Sector seeks tax holiday (like Section 80IA) or at least concessional income tax rate of 15% for any new undertaking / Airport Terminal or Runway or major expansion since they have long gestation period of 7-10 years to recover capital costs.
- Government should revisit the matter of providing Input Tax credit for Civil works in Aviation Infrastructure byconsidering them plant and not categorise under blocked credit under Sec 17(5) under CGST Act. to bring down overall project cost and thereby benefit passengers with lower User fee.
- Government should ensure and incentivise:
- Green Initiativeslike green energy projects, electric vehicles, and climate-resilient agriculture;
- Digital Infrastructure: Prioritize funding for sectors like digital technologies, artificial intelligence, etc
Amit Uplenchwar, Director, KPIL
“As we approach the Union Budget, we remain optimistic about its potential to drive growth across key sectors, including infrastructure, energy, and construction. The governments continued focus on energy and infrastructure is expected to provide a strong boost to the EPC industry. Investments in green energy initiatives will further enhance Indias competitiveness globally by moving towards net zero carbon emissions. At KPIL, we are aligned with these national priorities and committed to contributing meaningfully by delivering innovative, sustainable, and high-quality solutions across our projects. With a positive outlook for the year, we look forward to working collaboratively with all stakeholders to achieve Indias long-term Viksit Bharat 2047 development goals.”
Abhyuday Jindal, Managing Director, Jindal Stainless
“To boost stainless steel demand, we encourage the government to continue prioritising infrastructure spending, with a strong focus on developing mobility infrastructure like inland waterways, rail infrastructure, and coastal shipping. Securing access to key raw materials is another pressing need. We recommend reducing import duties to zero on critical raw materials unavailable in India, such as molybdenum ore, and continuing with zero duties on pure nickel, ferro-nickel, stainless steel scrap, and mild steel scrap. To promote sustainability, we propose making life cycle costing a mandatory criterion for material selection in public procurement. To safeguard the domestic industry from the distortion caused by low-priced imports, we urge the government to raise the basic customs duty on stainless steel products to 15% for all non-Free Trade Agreement countries. These steps will further strengthen the domestic stainless steel sector and position it as a vital driver of India’s Viksit Bharat@2047 vision.”
Vivek Lohia, Managing Director, Jupiter Wagons Limited
“As we look ahead to the Union Budget 2025-26, it is imperative that the Ministry of Railways adopts a multi-pronged approach to strengthen freight operations. Accelerating the expansion of Dedicated Freight Corridors (DFCs), including the newly introduced ‘Central India to Coast via DFC,’ will ensure faster, cost-efficient, and reliable freight movement, significantly enhancing the global competitiveness of Indian industries. Increasing the average speed of freight trains to 50 KMPH, deploying advanced 12,000 HP electric locomotives, and increasing the length of freight trains will be pivotal in accelerating freight loading. A strategic focus on railway geography assessments for sectors such as mining, NTPC, petrochemicals, cement, steel, FCI, dry ports, fertilisers, and textiles will ensure that freight operations align with India’s industrial needs.
Simultaneously, capital expenditure must prioritise modernising infrastructure, urban rail projects, and innovative strategies such as the real-time information system (RTIS) and the separation of parcel traffic from passenger operations to minimise delays and improve overall efficiency. Dedicated Kisan Rails for perishables will further support agricultural supply chains.
Equally vital are policies that incentivise domestic manufacturing under the ‘Make in India’ initiative. Expanding PLI schemes to include components such as rail wheels, axles, advanced bogies, and high-speed passenger coach components, alongside export incentives, will drive innovation and boost the railways’ global footprint. Additionally, the government should encourage public-private partnerships and provide financing for capacity expansion, fostering long-term growth. Bridging the talent gap in heavy engineering and R&D-focused companies through skill development and training programs will further strengthen the sector.
As Indian Railways progresses toward Net Zero Carbon status, this budget can be a transformative step in driving economic growth and sustainability.”
Ashish Suman, Partner, JSA Advocates & Solicitors
“Increased Allocation for roads and highways sector: It is expected that Budget 2025 will increase capex allocation for the roads and highways sector by up to 10%. It is also expected that the Budget will focus targeting a big increase in BOT projects and increased private investment with government was keen on awarding more projects under this model. It has been reported that the government has so far identified 15 significant road projects valued at INR 44,000 crore, spanning 937 kilometres, which will be awarded in the future. It is expected that in the coming fiscal the focus will be on restructuring or repaying the existing debts of NHAI using the budgetary support being provided by the government.
New ports and expanding existing docks: With increasing focus on China plus one strategy for diversifying manufacturing and supply chains beyond China by the United States, India needs to have a world class shipping infrastructure to sustain other major nations who are looking towards India to act as an alternative. It is expected that there will be more capex allotment to the ports infrastructure and announcement of measures to boost “Maritime Amrit Kaal Vision 2047” announced by the Prime Minister. It is also expected that there will be more financing allocated for upgradation of existing ports into regional maritime hubs.
Enhanced Infrastructure and safety for railways: It is expected that the main focus of the Budget will be towards railway safety as well as infra development for trains and railway stations. Financial allocation towards advancements in the KAVACH safety system, and the integration of artificial intelligence in operations like ticketing is expected. There may also be focus on manufacturing LHB coaches. There are expectations that Budget may announce new Vande Bharat trains and Vande Metro services, which will cater to suburban passengers. It has also been reported that the Budget for FY 2025-26 will provide for a 10% increase in capex allocation for the railways sector and like the previous financial year, it is expected that investment in capacity augmentation covering laying of new lines, gauge conversion, electrification, doubling, traffic facilities, investments in PSUs and metropolitan transport will continue.
Next phase of UDAN Scheme: Critical aspects of India’s aviation sector, particularly the Ude Desh ka Aam Naagrik (UDAN) scheme, which was launched in 2017, the initiative aims to enhance regional air connectivity by making air travel affordable for the common man. As UDAN enters its next phase, several key areas should receive attention in this Budget. For instance, the Budget may allocate funds to sustain and expand operations and there may be increased viability funding to regional airports facing financial challenges. The Budget will also provide for subsidies for regional airport operating under UDAN for using sustainable aviation fuel or for deploying fuel efficient aircraft.”
Sujjain Talwar, Co-Founding Partner, Economic Laws Practice
“The infrastructure sector will play a key role in India’s journey toward the Viksit Bharat 2047 vision. Following a Rs 11.1 trillion allocation in the previous Union Budget, industry leaders anticipate a 30 per cent increase, potentially reaching Rs 18 trillion in 2025-26.
Urban development is expected to remain a priority, with continued investments in the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which provides essential services like water supply and sanitation. As India’s urban population grows, funding for sustainable infrastructure, including sewage and waste management, will be crucial.
The railway sector is also set for significant growth, with a 15-20 per cent increase in its budget, raising the total allocation to approximately Rs 3 trillion. This follows the record Rs 2.62 trillion allocated in the 2024-25 budget.
Green infrastructure is expected to receive more attention, with policies promoting eco-friendly construction, renewable energy, and electric vehicle adoption. Increased funding for greenfield and brownfield projects will support sustainable land use transitions, aligning with India’s climate goals.
To bridge the investment gap, the government is expected to strengthen Public-Private Partnership (PPP) models, encouraging private capital participation, especially in Tier II and Tier III cities. This supports the National Infrastructure Pipeline (NIP) 2020, which highlights private sector involvement in large-scale projects.
As India strives for a $5 trillion economy, Union Budget 2025 is set to prioritise infrastructure development while integrating sustainability into its growth trajectory.”
Gahan Singh, Partner, Khaitan & Co
“It is expected that the 2025 budget would build on the Rs 11.1 trillion infrastructure allocation. In the energy sector, aside from the government’s continued focus on green energy and EV infrastructure development, incentives, tax breaks for ESS, we also expect incentive package for the supply chain to help develop newer sectors, viz. offshore wind, green hydrogen and accelerate development of nuclear energy power plants and a robust regulatory framework for green credits / carbon credits. We expect policy initiatives to ensure more widespread availability of green finance to sectors other than clean energy, transportation and energy efficiency.
In addition to allocation for roads and multimodal transport networks, key things that we will watch out for are allocations for port modernisation, developing newer and more smart cities and a framework for budgetary allocation with central state partnership for essential projects such as water supply, sanitation, waste management.”
Shivanshu Thaplyal, Partner, Khaitan & Co
“Infrastructure sector will continue to require a significant capital expenditure, and we expect an increase in the allocation for the infrastructure spend; there should be a continued focus on sustainability and development under the ongoing schemes such as Atal Mission for Rejuvenation and Urban Transformation (AMRUT) among others”
Ajit Kulkarni, Vice President and India Market Leader, AVEVA
India continues its journey to becoming a USD 5 trillion economy, the integration of industrial data and connected insights will be crucial in reshaping how industries operate. From manufacturing and energy to transportation and construction, leveraging real-time operational data enriched with AI can transform operations and improve productivity while accelerating progress towards India’s ambitious target of achieving net-zero emissions by 2070.
Connected industrial ecosystems and data-centric approaches will be key to empowering industries to manage energy use more efficiently while fostering a circular economy. By embracing unified data platforms and intelligent analytics, Indian businesses can better manage risk, foster collaboration, and drive commercial agility and responsible growth, even in volatile times.
To achieve this potential, India must prioritise strategic investments in digital infrastructure while building a workforce skilled in data analytics and emerging technologies. Through industry-academia partnerships and cross-sector collaboration, India can position itself as a hub for industrial innovation and sustainability.
Kapil Garg, Managing Director, Asian Energy Services Limited
“The oil and gas sector has experienced considerable momentum in recent months, and sustaining this growth hinges on focused policymaking in the Union Budget 2025. First and foremost would be the passage of the Oilfield (Regulation and Development) Amendment Bill in the Lok Sabha, which can mark a turning point for the industry. The proposed changes will expedite approvals, simplify arbitration processes, and particularly benefit unconventional hydrocarbons like shale and coalbed methane, improving not only investments but also enhance resource utilisation. Collaboration between public and private players must also be a priority. Initiatives like OLAP, DSF, and PEC have demonstrated the benefits of partnership in unlocking India’s hydrocarbon reserves. Expanding these frameworks and incentivising private participation will further boost domestic production and reduce import dependency. The recent collaboration between ONGC and BP in Mumbai High can serve as a blueprint for public-private synergies for technological innovation and enhanced production outputs going ahead.
Another important aspect to consider is the need to rationalise gas pricing formulas to minimise price distortions faced by producers and consumers under the existing multi-pricing mechanisms. By adopting a more streamlined formula that aligns with previous frameworks linking gas prices to crude oil benchmarks, India can enhance accessibility to cleaner fuel. These moves would be even more effective if implemented alongside the long-pending inclusion of oil and gas in GST, particularly natural gas. Its implementation would simplify taxation, improve the fuel’s competitiveness, and foster greater adoption of natural gas as a cleaner energy source, in line with India’s energy transition goals. The industry would also benefit from capital allocations for expanding midstream infrastructure, including pipelines and gas terminals. India’s current pipeline network, at approximately 20,000 kilometers, falls short of meeting future demand. Expanding this network and modernising fuel transport infrastructure are critical to de-bottlenecking supply chains and unlocking production potential in newly explored basins.”
Kuldeep Bhan, Group President, Global Metallurgy Business, Neterwala Group
“The upcoming budget presents a crucial opportunity for the government to strengthen indigenous manufacturing through the ‘Make in India’ initiative, especially for the petrochemical, fertiliser, and iron & steel sectors that are vital to India’s industrial growth. Concrete steps such as implementing stricter import regulations to protect local industries for critical components like centrifugal castings—reformer tubes, radiant tubes, and catalyst tubes—will empower companies like Uni Abex to reduce import dependency and enhance global competitiveness. Additionally, targeted R&D funding, skill development programs for specialised industries can further bolster the process industry. Such measures will enable manufacturers like us to play a pivotal role in advancing India’s infrastructure and industrial ambitions.”
Arif Aga, Director, SgurrEnergy
“The renewable energy sector in India is at a critical juncture where enhanced funding, robust regulatory frameworks, and a strong policy push are essential to meet the country’s ambitious goals of achieving 500 GW of non-fossil fuel energy by 2030. While private investments have significantly contributed to this sector’s growth, higher public spending is crucial to build a resilient ecosystem. The Union Budget 2025 is expected to play a transformative role by scaling up financial allocations and incentivising green technologies like green hydrogen, solar, and wind energy.
The National Green Hydrogen Mission, with a vision to produce 5 million tons of green hydrogen annually by 2030, exemplifies India’s commitment to decarbonisation and energy transition. Projects like NTPC’s green hydrogen facility in Andhra Pradesh, supported by 20 GW of renewable energy capacity, highlight the sector’s immense potential. Stakeholders anticipate substantial funding for R&D, tax holidays, and subsidies to make Indian green energy competitive globally.
By introducing innovative financial mechanisms, enhancing public-private partnerships, and fostering international collaborations, the government can not only achieve its domestic targets but also position India as a global leader in renewable energy. A progressive budget could truly accelerate India’s journey toward sustainable energy solutions while unlocking economic and environmental gains.”