Budget 2026–27 sets the stage for deeper credit, smarter cities, real estate growth
Union Budget 2026–27 lays out a calibrated roadmap to deepen formal credit, ease liquidity stress and accelerate infrastructure-led urban growth. With targeted capital support and policy clarity, it seeks to unlock the next phase of MSME expansion and real estate development beyond metros.
- Feb 1, 2026,
- Updated Feb 1, 2026 3:00 PM IST
Union Budget 2026–27 signals a calibrated push to strengthen India’s formal financial system while laying the groundwork for the next phase of urban and real estate-led growth. Through targeted capital support, infrastructure spending and regulatory clarity, the government aims to ease credit constraints, improve liquidity and channel investment beyond saturated metro markets.
In the financial ecosystem, the proposed ₹10,000-crore SME Growth Fund has emerged as a key structural reform. “The Budget strengthens the foundations of India’s formal credit and financial system through targeted, data-backed measures,” said Adhil Shetty, CEO, BankBazaar. He noted that the fund addresses the long-standing equity and growth capital gap faced by scaling MSMEs, which employ over 11 crore people and contribute nearly 30% of GDP. “Better access to patient capital can help viable enterprises move from survival mode to sustainable expansion,” Shetty said.
Liquidity support for MSMEs has also been reinforced through continued focus on TReDS and invoice discounting. Faster receivables financing is expected to improve cash flows, reduce reliance on informal borrowing and lower working capital costs. Within the broader banking landscape, the proposal to constitute a high-level committee on banking for Viksit Bharat points to a comprehensive sector review. “The focus on financial stability, inclusion, consumer protection and technology adoption is timely,” Shetty added, highlighting the clearer articulation of NBFCs’ role in last-mile credit delivery.
For households, the reduction in TCS under the Liberalised Remittance Scheme to 2% from 5% for foreign travel, education and medical expenses will ease upfront cash-flow pressures. “It improves affordability for overseas education and healthcare while reducing short-term liquidity strain,” Shetty said.
On the real estate front, the Budget has reinforced property as a core investment pillar. Ashish Narain Agarwal, Founder & MD, PropertyPistol, said the simplification of NRI property sale transactions is a “structural reform that improves liquidity and accelerates cross-border capital inflows.” He added that the ₹5,000-crore push for Tier-2 and Tier-3 cities, backed by the Infrastructure Risk Guarantee Fund, “materially reduces execution risk and enhances investor confidence.”
With infrastructure capital expenditure rising to ₹12.2 lakh crore, city-economic regions are set to expand beyond metros. Akshay Taneja, CEO, TDI Infrastructure, pointed out that metro markets are witnessing saturation, with residential prices rising 25–30% over the last three years. “Tier-2 and Tier-3 cities now account for 44% of residential land acquisitions and are driving demand beyond metros,” he said, adding that sustained infra spending and digitalisation incentives will be critical for scalable urban ecosystems.
Sujay Kalele, Founder and CEO, TRU Realty, said: “The Mumbai Pune High-Speed Rail Corridor reinforces our long-term confidence in the two growth engine cities of Maharashtra. Improved connectivity will make both cities high-performing residential and employment hubs, allowing professionals to access Mumbai’s opportunities without relocating, and supporting sustained, end-user driven real estate demand in the city. Furthermore, increase in infrastructure investment expands commercial real estate demand, particularly in logistics. This will positively affect the allied residential demand corridors."
The Budget’s infrastructure push is also closely tied to technology adoption. Sunil Pandita, CDO, Nemetschek Group, said the emphasis on AI, digital engineering and predictive modelling is “critical to enhancing safety, quality and lifecycle performance of assets.” He added that embedding digital-first practices can help India deliver infrastructure that is faster, cost-efficient and resilient.
From an investment lens, Vishal Raheja, Founder & MD, InvestoXpert Advisors, said the Budget articulates an integrated real estate vision. “Metro markets will continue to anchor institutional stability, while temple towns and pilgrimage corridors evolve as structured growth extensions,” he said, noting that improved connectivity will transform seasonal destinations into organised economic clusters.
Echoing this optimism, Saransh Trehan, MD, Trehan Group, said the record infrastructure outlay and focus on REIT-led asset recycling will “improve liquidity, boost investor confidence and support sustainable job creation.” Meanwhile, Sunil Sisodiya, Founder & CEO, Neworld Developers, highlighted tourism-led opportunities. “Enhanced connectivity and hospitality skilling initiatives will significantly strengthen demand for holiday homes and lifestyle-driven real estate,” he said.
Overall, Budget 2026–27 adopts a measured, policy-backed approach—linking credit reform, infrastructure intensity and technology adoption—to drive inclusive growth and long-term value creation across India’s financial and real estate ecosystem.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in
Union Budget 2026–27 signals a calibrated push to strengthen India’s formal financial system while laying the groundwork for the next phase of urban and real estate-led growth. Through targeted capital support, infrastructure spending and regulatory clarity, the government aims to ease credit constraints, improve liquidity and channel investment beyond saturated metro markets.
In the financial ecosystem, the proposed ₹10,000-crore SME Growth Fund has emerged as a key structural reform. “The Budget strengthens the foundations of India’s formal credit and financial system through targeted, data-backed measures,” said Adhil Shetty, CEO, BankBazaar. He noted that the fund addresses the long-standing equity and growth capital gap faced by scaling MSMEs, which employ over 11 crore people and contribute nearly 30% of GDP. “Better access to patient capital can help viable enterprises move from survival mode to sustainable expansion,” Shetty said.
Liquidity support for MSMEs has also been reinforced through continued focus on TReDS and invoice discounting. Faster receivables financing is expected to improve cash flows, reduce reliance on informal borrowing and lower working capital costs. Within the broader banking landscape, the proposal to constitute a high-level committee on banking for Viksit Bharat points to a comprehensive sector review. “The focus on financial stability, inclusion, consumer protection and technology adoption is timely,” Shetty added, highlighting the clearer articulation of NBFCs’ role in last-mile credit delivery.
For households, the reduction in TCS under the Liberalised Remittance Scheme to 2% from 5% for foreign travel, education and medical expenses will ease upfront cash-flow pressures. “It improves affordability for overseas education and healthcare while reducing short-term liquidity strain,” Shetty said.
On the real estate front, the Budget has reinforced property as a core investment pillar. Ashish Narain Agarwal, Founder & MD, PropertyPistol, said the simplification of NRI property sale transactions is a “structural reform that improves liquidity and accelerates cross-border capital inflows.” He added that the ₹5,000-crore push for Tier-2 and Tier-3 cities, backed by the Infrastructure Risk Guarantee Fund, “materially reduces execution risk and enhances investor confidence.”
With infrastructure capital expenditure rising to ₹12.2 lakh crore, city-economic regions are set to expand beyond metros. Akshay Taneja, CEO, TDI Infrastructure, pointed out that metro markets are witnessing saturation, with residential prices rising 25–30% over the last three years. “Tier-2 and Tier-3 cities now account for 44% of residential land acquisitions and are driving demand beyond metros,” he said, adding that sustained infra spending and digitalisation incentives will be critical for scalable urban ecosystems.
Sujay Kalele, Founder and CEO, TRU Realty, said: “The Mumbai Pune High-Speed Rail Corridor reinforces our long-term confidence in the two growth engine cities of Maharashtra. Improved connectivity will make both cities high-performing residential and employment hubs, allowing professionals to access Mumbai’s opportunities without relocating, and supporting sustained, end-user driven real estate demand in the city. Furthermore, increase in infrastructure investment expands commercial real estate demand, particularly in logistics. This will positively affect the allied residential demand corridors."
The Budget’s infrastructure push is also closely tied to technology adoption. Sunil Pandita, CDO, Nemetschek Group, said the emphasis on AI, digital engineering and predictive modelling is “critical to enhancing safety, quality and lifecycle performance of assets.” He added that embedding digital-first practices can help India deliver infrastructure that is faster, cost-efficient and resilient.
From an investment lens, Vishal Raheja, Founder & MD, InvestoXpert Advisors, said the Budget articulates an integrated real estate vision. “Metro markets will continue to anchor institutional stability, while temple towns and pilgrimage corridors evolve as structured growth extensions,” he said, noting that improved connectivity will transform seasonal destinations into organised economic clusters.
Echoing this optimism, Saransh Trehan, MD, Trehan Group, said the record infrastructure outlay and focus on REIT-led asset recycling will “improve liquidity, boost investor confidence and support sustainable job creation.” Meanwhile, Sunil Sisodiya, Founder & CEO, Neworld Developers, highlighted tourism-led opportunities. “Enhanced connectivity and hospitality skilling initiatives will significantly strengthen demand for holiday homes and lifestyle-driven real estate,” he said.
Overall, Budget 2026–27 adopts a measured, policy-backed approach—linking credit reform, infrastructure intensity and technology adoption—to drive inclusive growth and long-term value creation across India’s financial and real estate ecosystem.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in