India’s sustained focus on strengthening the urban infrastructure, through better transportation connectivity, enhanced urban services and improved logistics efficiency, has heightened expectations from the upcoming union budget. Stakeholders are seeking accelerated support for roads, railways, ports, urban rail and multimodal infrastructure that underpin economic growth and competitiveness. With the expansion of the national highway network and improved rail freight efficiency through dedicated freight corridors, industry expects higher capital outlays and stronger policy incentives for sustainability and green technologies. In the face of an intensifying climate crisis, enhanced programme-level allocations and targeted initiatives to strengthen critical urban water supply and wastewater infrastructure have also become imperative. Industry experts share their budget expectations for the transportation and urban infrastructure sector…
S Paramasivan, Managing Director, Afcons Infrastructure Limited
The Government’s sustained focus on capital expenditure (capex) has played a critical role in supporting economic growth, employment generation, and asset creation across sectors. Continued emphasis on infrastructure investment in the forthcoming Budget is important to maintain growth momentum and realise the Government’s vision for 2047.
This capex thrust should be complemented by implementing long‑pending reforms in taxation, financing, along with contract and dispute‑resolution frameworks. These measures will significantly enhance execution efficiency and capacity in the infrastructure sector and help create and consolidate globally competitive Indian construction players.
Rizwan Soomar, Chief Executive Officer and Managing Director, MENA (Middle East and North Africa) and India Subcontinent, DP World 
India’s economic growth over the next decade will be shaped by the strength and efficiency of its logistics backbone. Strategic Budgetary investments in port-led, multimodal connectivity – particularly rail-based freight corridors, inland terminals, logistics hubs, and green infrastructure – will reduce trade costs, improve manufacturing productivity, create employment, and accelerate GDP growth. By mobilising private capital, enabling a shift from road to rail and waterways, and integrating domestic supply chains with global trade networks, India can scale as a competitive, sustainable, and resilient manufacturing and trading hub.
Vivek Lohia, Managing Director, Jupiter Wagons Limited
With the Union Budget 2026-27 approaching, the rail sector is entering a phase where execution and reform will matter as much as headline allocations. The Railways Minister’s ‘52 Reforms in 52 Weeks’ programme signals a clear push toward system-wide improvements in operations, safety, and service delivery.
Based on recent trends, the rail outlay is expected to see a calibrated increase of around five percent, taking the overall allocation to approximately Rs 2,650 billion, including extra-budgetary resources. With electrification nearing completion, capital deployment is likely to be redirected toward easing congestion through new lines, gauge conversion, track doubling, and the expansion of Dedicated Freight Corridors and economic corridors linked to ports and mineral clusters.
The reform agenda’s focus on faster adoption of artificial intelligence and advanced technologies for safety, predictive maintenance, and train operations is particularly encouraging, as it reflects a shift from asset creation alone to measurable performance outcomes.
From an industry standpoint, continued capital support, regulatory simplification, deeper private sector involvement, and a more enabling framework for public-private partnerships will determine how effectively policy intent translates into on-ground execution. The forthcoming Budget should therefore focus on converting reform intent into projects that directly reduce congestion and lift operating efficiency across the rail network.
Sunil Nair, Chief Executive Officer, Ramky Infrastructure Limited
India’s infrastructure journey has gained remarkable momentum, and what’s commendable is the government’s steadfast commitment demonstrated in the Union Budget 2025-26. Key initiatives included a massive Rs 11,210 billion capex allocation, fueling projects like the Rs 1 trillion Urban Challenge Fund for cities as growth hubs and water sanitation, alongside the second Asset Monetisation Plan targeting Rs 10 trillion for new builds. Outcomes have been tangible: accelerated progress on Bharatmala highways, 1,000+ railway station modernisations, and metro expansions, reducing logistics costs and boosting urban connectivity—evident in our own Rs 2.15 billion sewage contracts in Hyderabad.
For Budget 2026, the sector anticipates sustained capex at Rs 12,000-13,000 billion with sharper focus on water infrastructure, including viability gap funding for PPPs in 7,000 MLD sewage treatment under Namami Gange and circular reuse mandates across urban areas. Enhanced support for HAM models in industrial parks, green bonds for STPs, and digital twins for O&M will accelerate nationwide execution. These steps will drive resilient growth, aligning with Viksit Bharat@2047 through sustainable urban transformation.
Raj Agarwal, Managing Director and Chief Executive Officer, Genus Power Infrastructures Limited
Smart metering is emerging as one of the most important building blocks of India’s power sector reform. As millions of meters are deployed under national programmes, the real opportunity lies in how effectively data is used to drive transparency, efficiency, and trust with consumers. The upcoming Budget can play a catalytic role by enabling discoms to invest in digital analytics, consumer engagement platforms, and modern grid operations alongside physical infrastructure. At the same time, continued focus on locally manufactured, high-quality smart meters will be critical to sustaining scale and reliability. When implemented thoughtfully, smart metering can transform the relationship between utilities and consumers while strengthening the financial and operational resilience of India’s electricity ecosystem.
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kshay Hiranandani, Chief Executive Officer, Serentica Renewables
As we step into 2026, the focus must shift grid integration and reliability. For renewables to compete effectively with thermal power, sustained policy and budgetary support must be complemented by targeted budgetary support for grid capacity building. Grid India, as the custodian of grid operations, needs advanced tools and technologies to manage rising renewable penetration. Investments in STATCOMs, grid-forming inverters, dynamic line rating and grid-forming batteries will be critical to enhance power flows in high renewable zones while preserving system resilience.
Energy storage will be central to the next phase. From an operational standpoint, the intermittency of renewables requires batteries to be deployed as grid assets, not just as commercial storage projects. Sudden wind gusts or cloud cover can cause sharp, large-area generation swings, requiring fast responding resources to stabilise the system. Battery systems under Grid India’s control can support frequency regulation, manage ramping requirements and meet evening peak demand. To enable this at scale, VGF for grid-connected battery assets will be essential.
Srivatsan Iyer, Global Chief Executive Officer, Hero Future Energies
As India enters the next phase of its energy transition in 2026, the priority must shift from capacity addition alone to building a dispatchable and resilient energy system which requires focused investments in new areas of energy storage, transmission infrastructure and a diversified clean energy mix. To further strengthen this sector, the upcoming Union Budget must announce additional measures aligned with India’s climate commitments and global competitiveness. Priority should be given to incentivising investments in green hydrogen, grid-scale energy storage, modernisation of transmission infrastructure, and introducing targeted PLIs or tax incentives to enhance energy security and build alternative material ecosystems. Together, these steps can reduce risk, improve grid reliability, and enable renewables to scale in a more efficient and commercially sustainable manner.
Sunil Rathi, Executive Director, Waaree Energies Limited
Policies must strengthen three core pillars. First, deeper support for vertically integrated manufacturing – spanning solar, batteries, and energy management systems – to build resilient domestic supply chains and reduce import dependence. Second, an expanded and more flexible viability framework that enables large-scale deployment of storage, particularly when integrated with solar and hybrid projects. And third, a sharper focus on domestic value addition that catalyses skilled employment and long-term manufacturing competitiveness.
Deepak Shetty, Chief Executive Officer and Managing Director, JCB India
As the Union Budget approaches, the CE industry looks forward to continued policy support that sustains India’s growth momentum. Infrastructure investment has consistently demonstrated a strong multiplier effect, and its ongoing prioritisation will be critical in enabling economic expansion across sectors. Enhanced funding support for state governments can further accelerate rural infrastructure development, particularly roads and water projects.
At a time when global trade conditions remain challenging, there is an opportunity to reinforce export competitiveness through WTO-compliant incentive frameworks and more effective utilisation of India’s Free Trade Agreements. A balanced emphasis on scaling up manufacturing, alongside sustained infrastructure development, will play a pivotal role in positioning India as a resilient and globally competitive economic powerhouse.
Dr. Kapil Garg, Founder and Managing Director, Oilmax Energy
In recent years, the economic policy approach has centred on deregulation and tax optimisation. The ORDA Bill marked a significant step in deregulating the upstream oil and gas sector by improving flexibility and reducing regulatory constraints. However, this progress was partially offset by the recent GST rationalisation, which raised GST on oilfield equipment and services from 12-18 per cent, increasing costs for an already capital-intensive industry.
There remains a strong case for reducing GST on oilfield services to five per cent and for bringing petroleum products under the GST framework, beginning with natural gas and aviation turbine fuel. Such a move would help correct structural tax inefficiencies, support gas-based industries and improve viability for segments such as coal bed methane and compressed biogas.
Granting infrastructure status to the petroleum sector would ease financing challenges by improving access to long term capital. Additionally, the government could consider setting up a dedicated petroleum financing fund, similar to those in allied sectors, by utilising resources from the Oil CESS Development Fund (OIDF) to support exploration of new oil and gas fields through public and private participation.
As Budget 2026 approaches, the industry is looking for targeted measures that strengthen domestic exploration and improve investment conditions across oil, gas and allied energy segments.
Kuldeep Bhan, Group President Global Metallurgy Business, Neterwala Group
Ahead of the Union Budget FY 2026-27, the Neterwala Group advocates for a resilient metallurgical framework to drive ‘Atmanirbhar Bharat.’ We urge strategic measures to bolster raw material security, including duty exemptions on ferro-nickel.
Targeted support for MSMEs supplying defense, aerospace, and energy sectors will strengthen our industrial base, enabling small-scale innovators to integrate seamlessly into high-integrity global value chains and foster inclusive national prosperity.
Amid the current geopolitical volatility and rapid global shifts, as a major growing economy, India’s budget must diversify exports beyond single markets to penetrate diverse world markets effectively.