In the Union Budget 2024, The government allocated a record ₹11.11 lakh crore (approximately $133 billion) to infrastructure, marking a 33% increase from the previous year. Key milestones included the completion of several high-profile projects under the Bharatmala and Sagarmala initiatives and significant progress in renewable energy infrastructure. The introduction of the Infrastructure Investment Trust (InvIT) framework also unlocked new funding avenues, attracting domestic and foreign investors. However, the industry’s growth trajectory was uneven, with private sector participation lagging and regional disparities in project execution. These dynamics have set the stage for heightened expectations from Budget 2025, particularly regarding policy continuity and innovative financing mechanisms.

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025 tomorrow, key players advocate for measures to bolster growth and address systemic challenges. Top on the wishlist are increased allocations for road, rail, and urban infrastructure projects, along with tax incentives to encourage private investment. There is also a strong demand for rationalising GST on construction materials and streamlining land acquisition processes. Additionally, the industry is keen to see a renewed focus on sustainable infrastructure, with incentives for green building practices and renewable energy projects. With the government’s vision of making India a $5 trillion economy by 2025, the construction and infrastructure sector is poised to play a critical role. The upcoming Budget, therefore, holds the key to unlocking the sector’s full potential and ensuring its alignment with India’s broader economic goals.

Top industry voices have to say about the road ahead: the reforms, investments, and strategies required to overcome hurdles and seize the opportunities waiting to be tapped.

Industry Speaks:

“Tata Consulting Engineers (TCE) views the FY 2026 Budget as a key opportunity to advance India’s infrastructure, energy transition, and technological innovation. We expect continued capital investment in water supply, metro systems, climate-resilient infrastructure, and support for Smart Cities, Transit-Oriented Development, and affordable housing.

A stronger push for renewable energy will accelerate the energy transition, including offshore wind, green hydrogen, and small modular reactors (SMRs), coupled with grid expansion, viability gap funding, and single-window approvals. Strengthening nuclear energy through Bharat Small Reactors (BSR) and a contingency reserve for disaster management will bolster long-term energy security.

Modernising ports, promoting shipbuilding, and developing industrial clusters for semiconductors, EV batteries, and clean technologies will boost self-reliance and export competitiveness. Coastal industrialisation and inland logistics hubs will further drive efficiency and reduce costs. Smart infrastructure, digital twins, AI-driven mining, and integrated water management will be crucial for sustainability.

Skill development, gender diversity in engineering, and incentives for public-private partnerships will help bridge workforce gaps. Enhanced climate finance, including green bonds, R&D funding for energy storage, and low-interest loans for critical projects, will support India’s journey towards decarbonisation, innovation, and global leadership in engineering and consultancy.”
–        Amit Sharma, Managing Director & CEO, Tata Consulting Engineers

“As we approach the Union Budget, we remain optimistic about its potential to drive growth across key sectors, including infrastructure, energy, and construction. The government’s continued focus on energy and infrastructure is  expected to boost the EPC industry strongly. Investments in green energy initiatives will further enhance India’s competitiveness globally by moving towards net zero carbon emissions. At KPIL, we align with these national priorities and are committed to contributing meaningfully by delivering innovative, sustainable, high-quality solutions across our projects. With a positive outlook for the year, we look forward to working collaboratively with all stakeholders to achieve India’s long-term ‘Viksit Bharat 2047’ development goals.”
–        Amit Uplenchwar, Director, KPIL

“The infrastructure sector continues to be the bulwark of Viksit Bharat’s growth journey towards a $5 trillion economy and beyond. We anticipate a progressive policy framework for the Union Budget 2025-26 that accelerates ambitious and transformative initiatives like Gati Shakti, the National Infrastructure Pipeline And more.

We also expect a higher allocation for expanding urban connectivity through Metro network extensions, regional airport development, and next-generation rail projects. Investments in affordable housing and expanding civic infrastructure to help decongest our cities will be instrumental in addressing pressing urban challenges while enhancing the quality of living for tens of crores of Indians.

We also foresee the budget emphasising technology adoption across the sector. Advanced tools like Building Information Modeling (BIM), real-time collaboration platforms, and integrated project management solutions are critical to delivering faster, safer, and more cost-effective infrastructure. Trimble envisions a construction ecosystem where digital transformation accelerates cost efficiency and strengthens environmental stewardship.”
–        Harsh Pareek, Regional Sales Director, Trimble India and SAARC

“We hope the upcoming Union Budget 2025 will continue focusing on modernising rolling stock, urban mobility, and infrastructure enhancements. India’s metro systems, now among the largest globally, have significantly transformed urban life and mobility. The continued development of safety, infra, and rolling stock is equally crucial to improve trade connectivity and drive economic growth. We anticipate a strong commitment to the “Make in India” initiative and reflective policies within the sector, strengthening domestic manufacturing and boosting exports. We hope the Budget would provide a clear roadmap for India’s transportation future, positioning the nation as a global leader in seamless mobility.”
–        Umesh Chowdhary, VC & MD, Titagarh Rail Systems Ltd

“FY 2025-26 is likely to play a pivotal role in realising India’s aspirations. With young India becoming highly mobile, entrepreneurial, and increasingly tech-savvy, the upcoming Union Budget is expected to address their needs by fostering supportive policies and a conducive business environment. Over the last decade, India has demonstrated remarkable progress in physical and Digital Public Infrastructure (DPI). This momentum is bound to accelerate with a focus on last-mile connectivity and infrastructure development in tier-II and III cities as well as beyond. A budget emphasising infrastructure, sustainable mobility, and industrial competitiveness will propel the automotive and allied sectors and significantly contribute to India’s growth story.”
–        Dr. Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd.

“As we approach the Union Budget, the construction industry hopes to significantly boost government spending on infrastructure projects and affordable housing, critical drivers of economic growth and job creation. Construction ERP providers and industry leaders are advocating for tax incentives and subsidies to encourage the adoption of ERP systems and other digital tools. Such measures can significantly enhance productivity, transparency, and cost efficiency in project management, enabling businesses across the sector to thrive in an increasingly competitive environment. We urge the government to focus on policy frameworks supporting sustainable construction practices, including incentives for green building initiatives and innovations in energy-efficient technologies. These steps will strengthen the sector and align with India’s broader goals of sustainability and digital transformation.”
–        Janak Vakharia, CEO, Xpedeon

“India’s infrastructure is poised for major transformation. As industry stakeholders, we eagerly anticipate the Union Budget 2025-26 for measures to accelerate sector growth. Key priorities include increased project funding, stronger central support to states for timely execution, and widespread adoption of surety bonds over bank guarantees for bid, performance, and advance securities by government agencies and PSUs to ease financial limits and enable efficient project delivery. Granting special status to major projects could improve access to affordable financing , ensuring timely and successful execution. A dedicated green energy fund to support hydropower and other sustainable projects would drive India’s sustainable energy transition.

Prioritising sectors like power, roadways, railways, and urban development will spur economic growth, job creation, and foreign investment. Investing in skill development for renewable energy and technology will prepare the workforce for future demands. By advancing infrastructure and strategic growth, India can unlock its immense economic potential, boost GDP, and solidify its position as a global powerhouse.”
–        Kavita Shirvaikar, Managing Director of Patel Engineering Limited

“As the Union Budget 2025 approaches, there is optimism surrounding the government’s ongoing focus on strengthening India’s manufacturing sector. With the ‘Make in India’ initiative and PLI schemes gaining momentum, targeted support for advanced manufacturing technologies, R&D investments, and infrastructure development is expected to help Indian manufacturers compete globally. Furthermore, there is an expectation that the government will introduce measures to encourage energy-efficient operations. Tax benefits and subsidies for sustainable technologies like pollution control systems and water recycling solutions could drive greener practices, reducing operational costs and environmental impact while supporting India’s climate goals. Similarly, expanding regulatory support for renewable energy installations, such as solar, wind, and biomass solutions, could significantly reduce dependency on fossil fuels. Developing robust digital infrastructure will propel India’s journey toward becoming a global manufacturing hub. Incentives for establishing smart factories, investments in 5G connectivity, and sustained support for technology-driven MSMEs will be instrumental in advancing this vision. Innovation clusters and skill development programs for advanced digital technologies will prepare the workforce for a digitally enabled future. Finally, competitive tax structures, raw material support, and strategic initiatives for the chemical sector are expected to drive its continued growth and innovation.”
–        S Sunil Kumar, Country President India and Regional Director Packaging IMEA, Henkel Adhesive Technologies

“The Indian real estate sector has witnessed an unprecedented boom in recent years. Government initiatives have catalysed a transformation from the Pradhan Mantri Awas Yojana to Smart Cities Mission, making India one of the most dynamic global real estate markets. As we look towards the Union Budget 2025-26, we anticipate that the government will continue to build on this momentum through more forward-thinking measures to further strengthen the real estate and infrastructure sectors, with a special focus on localisation and sustainability. A budget that introduces strategic steps such as targeted investments, substantial tax reliefs, enhanced funding mechanisms, and robust infrastructure initiatives – and that pushes for sustainable developments – would provide the much-needed impetus to developers for building homes across all segments, including luxury housing and affordable housing, thus ensuring a balanced growth trajectory and contributing to achieving the vision of a ‘Viksit Bharat’ by 2047, transforming India into a global leader in infrastructure and responsible urbanisation. Such a focus would present great avenues for growth in 2025 and beyond for the elevator and escalator industry. With a surge in infrastructure projects, including smart cities, metro systems, and high-rise buildings, the vertical transportation industry is poised to be the backbone of India’s growing urban landscape. Furthermore, we are also contributing to the localisation of production and creating a self-reliant supply chain within the country. By marrying the growth of India’s urbanisation with innovation in elevators and escalators, the Budget holds the potential to set the stage for urban spaces that meet today’s needs and are poised to thrive in the decades to come.”
–        Sebi Joseph, President, Otis India

“I look forward to the 2025 Financial Budget with optimism, expecting certain measures to drive sustainable growth and infrastructure expansion. The government should increase incentives for green building initiatives, streamline GST on construction materials, and enhance support for affordable housing projects. Furthermore, the Budget should focus on boosting the sector’s efficiency and output by introducing provisions to drive investment in urban infrastructure and simplify regulatory processes. With this, economic growth would propel the creation of a more sustainable and resilient landscape for the companies’ future within the real-estate sector.”
–        Manish Bansal, Director & CEO, Window Magic

“The 2025-26 Union Budget is potentially transformative for the real estate sector, fostering growth, sustainability, and inclusivity in India’s housing market. Strong policy support is crucial to drive demand and improve overall affordability in the real estate sector. Key priorities for the sector include gaining infrastructure status, streamlining approval processes, enhancing funding access, and rationalising GST. Additionally, policies should focus on increasing tax benefits for housing loans, reducing long-term capital gains tax on real estate investments, and expanding the scope of affordable housing initiatives.

One of our key expectations is expanding the affordable housing segment through increased price caps and enhanced tax benefits for homebuyers. Such measures will further boost demand and support the government’s vision of ‘Housing for All.’ Simplifying the GST structure on under-construction properties and clarifying Input Tax Credit policies can greatly improve cost efficiency for developers while making housing more affordable for buyers. Infrastructure investment in Tier 2 and Tier 3 cities should remain a top priority. Increased allocation for urban infrastructure development will facilitate better living standards and attract private investments to unlock the potential of emerging real estate markets. We also urge the government to introduce financial incentives for green and sustainable building practices. Tax rebates or grants for projects prioritising renewable energy, water conservation, and energy efficiency would align the real estate sector with India’s commitment to climate goals. Lastly, we seek policies that improve liquidity for developers, such as single-window clearance mechanisms and access to low-cost financing for housing projects. These steps will streamline operations and enable faster project delivery.”
–        Rakesh Reddy, Director, Aparna Constructions