Road Ahead for Growth of Infrastructure & Real Estate

Though this year's Budget continued to be positive and progressive for the growth of infrastructure and real estate sectors, more policy initiatives are required to sustain the growth of real estate, particularly residential real estate, which has seen a marginal decline in sales.
Vinod Behl

Infrastructure Sector

The FY26 Budget outlined an array of policy measures to boost infrastructure development, which is key to the growth of real estate and the economy as a whole. The Budget has made a higher allocation of INR 11.21 lakh crore for the infrastructure sector, with a special focus on pushing PPP funding by way of creating a 3-year pipeline of projects for implementation under PPP mode, besides creating an INR 1 lakh crore fund for redevelopment of cities.

States can now seek support from India Infra Project Development Fund Scheme to prepare PPP proposals. An outlay of INR 1.5 lakh crore under a 50-year interest-free loan to States for Capex, and incentives for reforms, is a major fund booster for undertaking infrastructure development. Seen in the backdrop of INR 30,000 crore increase in central Capex inflow to the States during April 2024 -January 2025, this assumes significance.