Industry leaders are strongly advocating for the government to significantly increase infrastructure spending to ₹3 lakh crore in the upcoming Budget 2026, effectively doubling the current allocation. This push comes amid growing recognition of infrastructure development as a critical driver for economic growth and job creation.

The current state of infrastructure spending is viewed as insufficient to meet the demands of a rapidly growing economy. Experts argue that enhanced investment in this sector is crucial for improving connectivity, reducing logistical bottlenecks, and enhancing overall productivity. A substantial increase in infrastructure spending is expected to have a cascading effect, stimulating demand across various sectors, including construction, manufacturing, and transportation.

Specifically, industry leaders are calling for increased investment in key areas such as roads, railways, ports, and airports. Enhanced connectivity through improved infrastructure is seen as essential for facilitating trade, attracting investment, and promoting regional development. Furthermore, investments in urban infrastructure, including water supply, sanitation, and affordable housing, are also considered vital for improving the quality of life and promoting sustainable urbanization.

The government's focus on digital public infrastructure (DPI) is also expected to remain a priority in Budget 2026. DPI increasingly supports various sectors like healthcare, logistics, education, and MSME digitization. Sustained public investment and regulatory clarity have enabled DPI to scale rapidly, becoming an essential layer of national infrastructure.

In addition to increased allocations, industry leaders are also urging the government to streamline regulatory processes and address financing challenges in the infrastructure sector. This includes measures to expedite project approvals, resolve land acquisition issues, and promote innovative financing mechanisms such as public-private partnerships (PPPs).

Furthermore, experts suggest a shift in agricultural spending from subsidies to direct infrastructure investment to boost agricultural productivity. Padmanand V, Partner at Grant Thornton Bharat, noted that current spending on farm mechanization and infrastructure is significantly lower compared to the amount spent on DBT and subsidies. He suggests a more rational budget with greater allocation towards direct infrastructure spending through PPPs and investment subsidies, aligning with practices in more developed economies like the USA and China.

Overall, the expectation is that Budget 2026 will prioritize policy continuity and strategic interventions to support economic growth and address key domestic priorities. Increased infrastructure spending is seen as a crucial component of this strategy, with the potential to unlock significant economic benefits and improve the lives of citizens across the country.