Manish Sharma of PwC, Prashant Sharma of NAREDCO, Amit Sharma of Tata Consulting Engineers, Sunil Nair of Ramky Infrastructure, Parag Munot of Kalpataru, Paul Salnikoff of Executive Centre, Shilpin Tater of Superb Realty, Amit Sharma of Matrix Geo Solutions, Vineet Mittal of Avaada Group, Arun Shukla of JK Lakshmi Cement, along with multiple real estate, infrastructure and urban development leaders, respond to ₹12.2 lakh crore capital expenditure, Infrastructure Risk Guarantee Fund, REIT-led asset monetisation, City Economic Regions and execution priorities outlined in Union Budget 2026–27
The Union Budget 2026–27 places Infrastructure and real estate at the centre of India’s medium-term growth strategy, with a capital expenditure outlay of ₹12.2 lakh crore, a continued emphasis on execution quality, and a clear push towards unlocking private investment. Key announcements around the Infrastructure Risk Guarantee Fund, REIT-led monetisation of CPSE assets, City Economic Regions, and seven high-speed rail corridors signal a shift from aggressive capex expansion towards risk mitigation, capital access, and time-bound delivery. Industry leaders across infrastructure, real estate, urban development, engineering, construction-linked services, and capital providers have responded to the Budget, broadly welcoming the direction while underlining the importance of coordinated execution across states, lenders, and private developers.
Manish Sharma, Sector Leader Infrastructure Transport and Logistics at PwC, said the Budget reflects a clear transition from rapid capex expansion to execution-led growth. He noted that after more than a 30 percent increase in capital expenditure between FY23 and FY25, growth has moderated to around 11 percent in FY26 and 9 percent in FY27, with the emphasis now shifting to delivery and financial closure. He said initiatives such as partial credit guarantees are critical as more developers enter PPP projects, particularly user-charge based models like toll roads, and stressed that credit guarantees must work before defaults occur. Sharma also observed that while high-speed rail corridors and Dedicated Freight Corridors are welcome, their success depends on irrevocable state-level commitments on land, last-mile connectivity, and security to ensure timely execution. He added that City Economic Regions can help curb unplanned expansion of Tier II and III cities, provided municipal reforms and service delivery keep pace.
Prashant Sharma, President of NAREDCO Maharashtra, commented that the Union Budget strongly reinforces the government’s long-term commitment to inclusive and sustainable growth through infrastructure-led development. He said the increase in capital expenditure to ₹12.2 lakh crore, combined with the continued focus on Tier II and III cities, will act as a demand catalyst for real estate beyond metros. Sharma noted that improved connectivity, urban infrastructure funding, and the focus on growth corridors are expected to significantly enhance housing demand and accelerate redevelopment, particularly in Maharashtra. He also highlighted that the government’s balanced approach to fiscal consolidation, expansion of REITs, CPSE asset monetisation, and simplified tax processes for NRIs will help strengthen investor confidence and attract long-term capital into the sector.
Paul Salnikoff, Managing Director and CEO of Executive Centre, said the Budget underscores the government’s continued focus on strengthening urban infrastructure and improving capital access for long-term commercial development. He observed that instruments such as REITs and InvITs have enhanced transparency and institutional participation in India’s real estate ecosystem over the past decade. Salnikoff said the proposed Infrastructure Risk Guarantee Fund and calibrated partial credit guarantees reinforce lender confidence by addressing construction-phase risks. He added that for enterprise-focused workspace providers, these measures support the creation of high-quality, professionally managed office environments aligned with evolving occupier expectations, while the parallel emphasis on hospitality and service-led institutions contributes to building a skilled, customer-centric workforce.
Amit Sharma, Founder and Whole Time Director of Matrix Geo Solutions, said the Union Budget sends a clear signal that India’s next phase of infrastructure growth will be driven as much by data and precision as by physical assets. He said that with record capital expenditure of ₹12.2 lakh crore and a strong focus on transport, urban development, water systems, and digital ecosystems, infrastructure planning and execution will become increasingly technology-led and outcome-focused. Sharma noted that large corridor projects, smart cities, flood mitigation, and logistics networks depend on accurate terrain models, authoritative base maps, and real-time geospatial intelligence to reduce risk and accelerate delivery. He added that continued policy support for drones, space technologies, and artificial intelligence reinforces the shift towards integrated planning environments, making decision-ready geospatial data critical for project owners, PSUs, and EPC players.
Echoing similar sentiment, Amit Sharma, Managing Director and CEO of Tata Consulting Engineers, stated that continued high infrastructure spending strengthens confidence in execution across transportation, urban development, and logistics. He said the emphasis on high-speed rail, along with roads, metros, ports, and urban infrastructure, signals a move towards next-generation connectivity, while policy continuity in clean energy and grid strengthening supports long-term energy security.
Sunil Nair, CEO of Ramky Infrastructure, observed that the proposed Infrastructure Risk Guarantee Fund is a forward-looking intervention that directly addresses risk perception during early stages of project development. He said partial credit guarantees can ease financing bottlenecks, embolden private participation, and support large-scale infrastructure execution. Nair also pointed to the role of CPSE REITs in unlocking dormant capital and catalysing investment across allied sectors.
Parag Munot, Managing Director of Kalpataru, said the rise in public capital expenditure will indirectly drive demand for residential and commercial real estate across the country. He added that the focus on City Economic Regions, high-speed rail corridors, and enhanced municipal bond financing will unlock new micro-markets and support integrated township development.
Shilpin Tater, Managing Director of Superb Realty, said the government’s intent to monetise surplus CPSE land through dedicated REITs marks a structural reform for the real estate sector. He noted that this shift from ownership to efficient asset management can deepen the REIT market, improve transparency, and reduce dependence on traditional bank financing over time.
Vineet Mittal, Chairman of Avaada Group, commented that the Budget strikes a balance between ambition, growth, and fiscal discipline. He said sustained public capex, combined with reforms such as the Infrastructure Risk Guarantee Fund, signals a focus on building long-term productive capacity rather than short-term stimulus.
Arun Shukla, President and Director of JK Lakshmi Cement, said the continued emphasis on infrastructure-led growth, regional development, and sustainability provides long-term visibility for industries linked to construction and urban expansion, while supporting balanced growth and employment generation.
Gaurav Varma, Director of ORA Group, said Budget 2026–27 signals a clear commitment to infrastructure-driven urbanisation and regional development. He noted that the continued focus on Tier II and III cities will accelerate planned townships and long-term real estate appreciation in emerging markets. Varma added that proposed high-speed rail corridors will act as growth catalysts by opening new residential, industrial, and mixed-use development corridors, while simplified compliance for NRI property transactions and incentives for digital infrastructure will attract both domestic and foreign investment.
Shraddha Kedia Agarwal, Director of Transcon Developers, commented that the Budget underscores the government’s intent to strengthen urban infrastructure and financial systems, directly supporting real estate growth. She said increased capital expenditure and sustained infrastructure momentum will improve connectivity, reduce congestion, and enhance quality of life in urban centres, thereby boosting residential demand. Agarwal added that measures such as REIT expansion, municipal bond incentives, and simplified processes for NRIs will improve liquidity and transparency across the sector.
Kamlesh Thakur, Co-Founder and Managing Director of Srishti Group, stated that the Union Budget reinforces the government’s intent to build inclusive and future-ready cities through sustained infrastructure spending and strategic urban planning. He said the focus on Tier II and III cities will encourage planned development in emerging urban centres, while reforms in NBFCs, improved banking health, and enhanced access to bond markets will support timely project execution and funding stability.
Dhruman Shah, Promoter of Ariha Group, observed that the Budget provides renewed momentum to the real estate sector through its strong infrastructure push and city-focused growth strategy. He said improved urban connectivity, targeted investment in economic corridors, and enhanced municipal financing will help create more organised and liveable urban spaces. Shah added that the push towards REITs and improved banking health will enhance funding avenues and reduce execution risks for developers.
Nihar Jayesh Thakkar, Founder of The Mandate House, said the Budget signals structural maturity in India’s growth strategy. He noted that the scale-up of public capital expenditure, expansion of infrastructure financing through REITs and InvITs, and focus on Tier II and III growth centres indicate a shift away from metro-centric development. Thakkar added that the Infrastructure Risk Guarantee Fund is a timely intervention that will de-risk execution and encourage greater private participation.
Amit Jain, Chairman and Managing Director of Arkade Developers, said the continued emphasis on capital expenditure and infrastructure investment provides long-term visibility for urban development. He noted that in mature markets such as Mumbai, value creation will increasingly depend on execution of connectivity upgrades, redevelopment, and effective urban planning, while the Infrastructure Risk Guarantee Fund could improve access to finance for large housing projects.
Parag Munot, Managing Director of Kalpataru, said the increase in public capital expenditure to ₹12.2 lakh crore will indirectly drive demand for residential and commercial real estate across the country. He added that City Economic Regions, high-speed rail corridors including Mumbai–Pune, and enhanced municipal bond financing will unlock land parcels and create new micro-markets for integrated townships.
Rohan Khatau, Director of CCI Projects, commented that while the Budget gives limited direct relief to homebuyers, measures such as the Infrastructure Risk Guarantee Fund and CPSE REITs can unlock funds and speed up asset monetisation. He said simplification of TDS on property transactions involving non-residents through PAN-based challans will improve transparency and ease of transactions.
Bala Ramajayam, Founder and Managing Director of G Square Group, said the Budget provides a strong tailwind for real estate growth in Tier I and II cities, particularly in Tamil Nadu. He noted that continued infrastructure development, City Economic Regions, and improved connectivity will enhance the attractiveness of planned residential locations and support affordability and homebuyer confidence.
Ashish Raheja, CEO and Managing Director of Raheja Universal, said the focus on city economic regions and infrastructure-led growth will significantly improve connectivity and urban infrastructure in Tier II and III markets. He added that the Infrastructure Risk Guarantee Fund and proposed tax incentives for Global Capability Centres could support commercial real estate demand and local employment.
Chandresh Vithalani, Director of Palladian Partner Advisory, observed that the renewed policy momentum backed by sustained infrastructure investment will unlock demand across key micro-markets in Tier I and II cities. He said this focus lays the groundwork for stronger developer confidence and healthier real estate absorption.
Arun Shukla, President and Director of JK Lakshmi Cement, said the Budget’s emphasis on infrastructure development in cities with populations above five lakh will strengthen Tier II and III cities as emerging growth centres. He added that the focus on sustainability and carbon capture initiatives provides long-term visibility for industries linked to construction and infrastructure.
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