India's Budget 2026: Infra Spending to Drive Growth Amid Global Trade Challenges

The Union Budget 2026 is expected to focus on infrastructure spending to anchor India's growth strategy and become the world's third-largest economy. The Confederation of Indian Industry (CII) has urged the Centre to increase central capex by 12% and financial support to states by 10%. A new ₹150 lakh crore National Infrastructure Pipeline (NIP) for 2026-32 is also proposed to provide long-term visibility to investors and state governments. The government's capital expenditure has already shown strong growth, with a 32.4% increase during April-October FY2026. Economists note that capital expenditure has a strong multiplier effect and employment potential, making it a key tool for India's growth strategy.