Budget 2026: Experts see capex boost driving water, sanitation, sustainability-linked infra pipeline

The Union Budget 2026-27 has drawn a largely positive response from industry leaders across transport, railways, urban infrastructure and sustainability-linked sectors, with the record increase in public capital expenditure being viewed as a strong signal of long-term policy commitment. The scale and direction of infrastructure spending outlined in the Budget are being seen as central to strengthening India’s mobility networks, accelerating urban renewal and supporting environmentally responsible growth.

Railways positioned at the core of India’s mobility and logistics push

Industry executives from the railways and transport technology space highlighted the Budget’s emphasis on positioning railways at the core of India’s long-term mobility and logistics strategy. Gaurav Lath, Joint Managing Director of Concord Control Systems Limited, said the record effective capital outlay reflects a decisive move to modernise India’s transport backbone. According to him, sustained investment in high-speed rail connectivity, expansion of freight corridors and improvements in logistics efficiency are essential to enabling seamless movement of people and goods as India aims to scale up economic activity over the next decade.

Indigenisation focus seen strengthening signalling and rail electronics ecosystem

He also pointed out that the Budget’s continued focus on indigenisation and advanced technologies signals a shift toward a more resilient and globally competitive industrial ecosystem. This approach, he said, strengthens domestic manufacturing capabilities while reducing reliance on imports, particularly in critical areas such as signalling, control systems and railway electronics.

Tech-led infrastructure to shape the next phase of rail modernisation

Echoing similar views, Nitin Jain, Joint Managing Director at Concord Control Systems, said the Budget presents a clear, forward-looking vision for India’s transport and infrastructure ecosystem. He noted that the emphasis on technology-led infrastructure, advanced electronics and digital enablement reflects a maturing industrial landscape where innovation and reliability will define competitiveness. Jain added that as India moves toward intelligent and autonomous rail networks, the role of control, signalling and embedded electronics will become increasingly critical in ensuring safety, efficiency and scalability.

Public capex push expected to widen opportunities in sustainability-linked infrastructure

Beyond transport, the infrastructure thrust is also being seen as a catalyst for sustainability and environmental resilience. Manish Jain, Managing Director of Enviro Infra Engineers Limited, said the Budget reinforces the government’s commitment to infrastructure-led growth while placing sustainability at the centre of development. He highlighted that the substantial rise in public capex creates fresh opportunities across water, wastewater, sanitation and environmental engineering, especially as infrastructure development expands across urban systems, logistics networks and water management.

Waterways, multimodal logistics and urban systems seen driving project pipelines

Jain further noted that initiatives such as the creation of new national waterways, strengthening of multimodal logistics and continued focus on urban infrastructure align closely with the sector’s need for scalable and technology-driven solutions. According to him, these measures also support long-term project pipelines at the state level, encouraging companies to invest more aggressively in skilled manpower, advanced technology and innovative project execution.

Urban renewal and redevelopment expected to gain pace with higher state transfers

Urban infrastructure and real estate development are also expected to benefit from the Budget’s capex-led approach. Mahek Modi, Whole Time Director and Chief Financial Officer of Modis Navnirman Limited, said the sustained emphasis on urban development, combined with higher transfers to states, strengthens the financial capacity of city and state governments to accelerate urban renewal. She pointed out that this is particularly relevant for large metropolitan centres, where redevelopment of ageing housing stock, improved civic systems and better connectivity are becoming urgent priorities.

Bigger fiscal support seen improving livability and long-term urban asset value

Modi added that higher fiscal support for states, along with continued backing for centrally sponsored urban schemes, will help cities address density challenges, modernise infrastructure and deliver more integrated and sustainable real estate growth. According to her, these investments not only enhance livability and accessibility but also improve the long-term value of urban assets.