Budget 2026 Expectations: Industry Leaders Urge the Government to Double Infrastructure Spending to Rs 3 Lakh Crore

Published by News 18

Ahead of Budget 2026, multiple sectors, including real estate, logistics, and data infrastructure, have highlighted the need for stronger government spending and structural reforms.

As India prepares for the Union Budget 2026, industry leaders have urged the government to significantly increase infrastructure spending. They are calling for a doubling of allocations to Rs 3 lakh crore, which they say will boost economic growth, generate employment, and improve India's global competitiveness.

According to the Logistics Sector Skill Council (LSC), leaders from the logistics and real estate sectors Budget 2026, as well as renewable energy and data infrastructure, have stressed the need for bold reforms and higher capital expenditure Budget 2026. Their demand reflects a widespread expectation that the government will prioritise infrastructure to accelerate development nationwide.

Last year, the government allocated Rs 1.5 lakh crore in interest-free loans to states and invested heavily in highways, urban transport, and innovative city projects. With this in mind, experts expect Budget 2026 infrastructure spending to double, helping India achieve its goal of becoming a global economic powerhouse.

Focus on Logistics and Supply Chains

Industry representatives highlighted that Budget 2026 expectations come at a crucial time for the logistics sector. Logistics is increasingly seen as a key driver of India's economic growth, and enhanced infrastructure spending Budget 2026 could improve supply-chain efficiency, support employment, and strengthen domestic industries.

Experts said that doubling infrastructure investment, following years of highway, railway, and logistics corridor development, will not only make supply chains more efficient but also boost India's position in global trade.

Consumption and Retail Growth Linked to Infrastructure

According to industry voices, better infrastructure is essential for the next phase of consumption growth. Investments in modern warehousing, cold-chain facilities, and last-mile logistics corridors are expected to support rising demand in retail and e-commerce. This will also help create jobs and stimulate regional economic development.

Energy and Digital Infrastructure Priorities

The clean energy sector has emphasised the need for more investment across the solar energy value chain. Experts have recommended focusing on decentralised solar projects, microgrids, recycling systems, research and development for solar panels and batteries, and strengthening domestic supply chains for energy storage solutions.

Digital infrastructure is another key focus area. Industry leaders have called for investments in world-class data centres, affordable power for technology facilities, and tax incentives for companies working on advanced computing networks and AI hardware. These steps are expected to make India a hub for digital innovation and sustainable technology.

Hospitality, Urbanisation, and Real Estate Outlook

The hospitality industry has requested infrastructure upgrades in the Union Budget 2026 to boost tourism-led growth. At the same time, real estate leaders have highlighted opportunities in Tier 2 and Tier 3 cities. They have suggested increased capital expenditure Budget 2026 on regional connectivity, including ring roads and metro expansions, to unlock new growth corridors and improve urban development.

There have also been calls to revise the affordable housing price cap. Raising the limit to Rs 75 lakh or Rs 80 lakh will better reflect rising land and construction costs. This will allow more families in growing cities to benefit from tax incentives and credit-linked subsidies.

Bhupinder, COO of RISE Infraventures, said policies need to adapt to changing buyer behaviour. Revisiting income thresholds, home loan deductions, and capital gains taxation is essential to maintain housing affordability and restore buyer confidence. He also suggested higher home loan deductions under Section 80C and a stable interest rate environment to support genuine demand without fueling speculation.

Faster Approvals and Policy Clarity Needed

Industry representatives emphasised that timely approvals and clear policies are critical to the growth of real estate and infrastructure. They have long advocated for a single-window clearance system and additional tax relief for homebuyers. According to experts, faster approvals and predictable taxation will improve project viability, boost investment, and restore confidence among buyers.

Looking Ahead: Budget 2026 as a Growth Opportunity

With unified demands from the logistics and real estate sectors Budget 2026, as well as energy, technology, and hospitality industries, stakeholders see Budget 2026 expectations as an opportunity to lay the foundation for inclusive, infrastructure-led growth. Higher capital expenditure, structural reforms, and long-term policy clarity could drive sustainable development, create jobs, and improve India's global competitiveness.

Industry leaders are hopeful that the government will take bold steps in the Union Budget 2026 infrastructure spending. By doubling the allocation to Rs 3 lakh crore, the country can accelerate economic growth, strengthen supply chains, and ensure that development reaches all regions.

1. What are the main Budget 2026 expectations from industry leaders?

Industry leaders expect the government to double infrastructure spending Budget 2026 to Rs 3 lakh crore, boosting growth, jobs, and competitiveness.

2. Which sectors are pushing for higher capital expenditure in Budget 2026?

Key sectors include logistics, real estate, renewable energy, and digital infrastructure, highlighting the need for firm Union Budget 2026 infrastructure plans.

3. How will increased infrastructure spending benefit India?

Higher spending on roads, railways, logistics, and urban transport will improve supply chains, create jobs, and strengthen India’s position as a global economic hub.

4. What reforms are expected in the logistics and real estate sectors Budget 2026?

Stakeholders seek faster project approvals, predictable taxation, single-window clearance systems, and higher capital outlay to drive regional growth.

5. Will Budget 2026 support affordable housing and Tier 2 - 3 city development?

Yes, experts recommend revising the housing price cap, increasing capital expenditure on regional connectivity, and offering tax benefits to make housing more accessible.