Indian budget 2025: Infrastructure remains a priority

Indian Prime Minister Narendra Modi’s coalition government has unveiled its full-year budget where it has reiterated its commitment to infrastructure investment.

The Indian highways allocation saw an increase of around 7% from last year in the 2025 Budge The Indian highways allocation saw an increase of around 7% from last year in the 2025 Budget. Image: Adobe Stock

Finance minister Nirmala Sitharaman announced a small increase in its infrastructure expenditure target for this year from 11.1 trillion to 11.2 trillion rupees (US$128.5 billion).

The government is reportedly looking for an increase in public-private partnerships (PPPs) regarding its infrastructure projects.

Finance minister Nirmala Sitharaman said in her speech that, “Infrastructure development remains a cornerstone of India’s growth strategy, with targeted investments to enhance connectivity and reduce logistics costs.”

The government has also proposed offering interest-free loans to states to enable them to spend more on infrastructure development.

The budget included an increase of around 10% for the country’s rail infrastructure, with the money to be spent on new trains, the modernisation of over 1,000 stations, track electrification and an expansion of the county’s high-speed rail network.

The highways allocation saw an increase of around 7% from last year, with a significant proportion to be spent on The Bharatmala Pariyojana programme, an ambitious road and highway development project.

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The budget also set a goal to generate 100GW of nuclear energy by 2047. As part of this plan, a Nuclear Energy Mission has been launched with a budget of 200 billion rupees (US$2.2 billion). The plan is to deploy five indigenous reactors by 2033 and amend laws, like the Civil Liability for Nuclear Damage Act, to realise goals and get more private sector participation in the sector.

“The Union Budget reflects a strong commitment to inclusive and sustainable growth, covering key areas such as infrastructure development, green energy, taxation reforms, and social welfare,” said Mr. Shalabh Chaturvedi, MD, Case Construction Equipment – India & SAARC.

“The substantial increase in funding for key infrastructure projects, NIP extension, bridging the rural-urban divide, and enhanced allocations urban infrastructure set the stage for new opportunities in Construction Equipment Industry.”

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