Slew of measures to improve roads, highways, connectivity at all levels
Budget 2025 gives the development of urban infrastructure high priority with emphasis on modernising cities and improving essential services, reflecting the Government’s push to transform urban spaces into more livable, sustainable, and efficient environments.
Union Budget 2025-26 outlines several initiatives aimed at bolstering India’s infrastructure sector, fostering sustainable development, and stimulating economic growth across various sectors.
The Central Government will provide Rs 1.5 lakh crore in 50-year interest-free loans to state governments for infrastructure projects. This measure is expected to encourage public-private partnerships in developing new roads, highways, and metro projects, benefiting industries such as cement, steel, and commercial vehicles.
A Rs 10 lakh crore asset monetisation plan has been announced to unlock the value of Government assets and reinvest the proceeds into development of new infrastructure.
The Government will establish a Rs 25,000 crore maritime development fund to support the shipbuilding and repair industry. This initiative includes creating a new shipping company in collaboration with oil refiners and the Shipping Corporation of India to expand the fleet and reduce reliance on foreign carriers.
For road transport and highways development, the Budget has allocated Rs 2.87 lakh crore for 2025-26. This represents an increase of approximately 2.4 per cent from the previous year’s allocation of Rs.2.80 lakh crore.
For the Railways, an allocation of Rs 2.55 lakh crore has been made as against Rs 2.62 lakh crore in 2024-25. The Budget emphasises the expansion of renewable energy sources and the promotion of domestic manufacturing of EVs. This includes incentives for solar energy projects and support for the production of electric vehicles, contributing to sustainable infrastructure growth.
The urban infrastructure development segment of Budget 2025 emphasises modernising cities and improving essential services, reflecting the Government’s push to transform urban spaces into more livable, sustainable, and efficient environments.
