During the presentation of the Union Budget for 2026-27, Finance Minister Ms Nirmala Sitharaman highlighted a robust increase in public capital expenditure to stimulate India’s growth and improve infrastructure capacity. Public capex has already risen from Rs. 2 lakh crore (US$ 22.2 billion) to INR. 11.2 lakh crore (US$124.4 billion) in BE 2025-26, and the Budget has set aside Rs. 12.2 lakh crore (US$ 135.6 billion) for the fiscal year 2027. The Plan additionally suggests setting up an Infrastructure Risk Guarantee Fund to boost the confidence of private developers via well-structured partial credit guarantees. To enhance logistics and freight transport, the Budget calls for creating new Dedicated Freight Corridors from Dankuni to Surat and aims to put 20 new National Waterways into operation within the next five years. A ‘Coastal Cargo Promotion Scheme’ has been suggested to increase the proportion of inland waterways and coastal shipping from 6% to 12% by 2047, thereby promoting a shift from road and rail. Centres of excellence for skill development in waterways and a ship repair facility will be established in Varanasi and Patna to promote inland waterways transport. Seven High-Speed Rail routes will be established to connect key city pairs, promoting eco-friendly passenger transportation. To promote domestic aircraft production, a ‘Seaplane VGF Scheme’ has been suggested for last-mile connectivity and tourism. The Budget has designated Rs. 20,000 crore (US$ 2.2 billion) allocated for Carbon Capture UUtilisationand Storage (CCUS) technologies in key sectors over a period of five years. The Budget additionally suggests prioritising City Economic Regions (CERs) for Tier II and Tier III cities, designating Rs. 5,000 crore (US$ 555.6 million) for each CER over a period of five years.