The Business Bytes
Sandeep Gulati
As we approach the 2025-26 Union Budget, infrastructure expenditure remains the linchpin of India’s economic growth strategy. The allocation of Rs 11.1 lakh crore for infrastructure in the 2024-25 budget has laid a robust foundation, and the upcoming budget must accelerate momentum in key sectors such as railways, defence, power, and data centers. To maximize the potential of these investments, the government must introduce targeted measures and incentives to stimulate sector-wide growth, drive demand, and catalyze long-term economic development.
The government’s commitment to initiatives like the National Infrastructure Pipeline (NIP), PM Gati Shakti National Master Plan, and Jal Jeevan Mission (JJM) must remain unwavering. Sustained funding for urban infrastructure, affordable housing, and water supply projects will further cement infrastructure as the cornerstone of economic progress.
While substantial attention is being given to roads, railways, and power, a more balanced and inclusive approach is necessary. Urban infrastructure presents unique challenges that require sector-specific solutions, emphasizing sustainability, smart city planning, and eco-friendly construction. Programs such as the Pradhan Mantri Awas Yojana (PMAY) and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) should continue to be prioritized to address the needs of rapidly growing urban centers.
Public-private partnerships (PPP) will play a pivotal role in driving sustainable infrastructure projects. The government must explore incentives for green building materials and introduce a comprehensive sustainability rating framework to encourage environmentally responsible urban development. Investments in smart cities, integrated transportation systems, and resilient infrastructure are essential for addressing the demands of India’s rapidly urbanizing society.
To achieve India’s ambitious target of becoming a $7 trillion economy by 2030, an estimated $2.2 trillion in infrastructure investment will be required. This calls for bold fiscal measures, as infrastructure spending has a proven multiplier effect, with every rupee invested generating three times the impact on GDP. With initiatives like ‘Make in India’ boosting domestic manufacturing, the nation is poised for transformative growth, spurring demand for construction materials, machinery, and technological solutions across sectors such as automobiles, pharmaceuticals, and textiles.
The 2025 Union Budget presents a critical opportunity to lay the groundwork for an infrastructure-driven growth trajectory, positioning India as a global economic powerhouse.
The author is the Managing Director of Egis South Asia, and the opinions expressed are personal.
