Budget’s Capex Push, Risk Guarantee Fund Seen Accelerating Infra and Housing Growth

Industry says policy continuity and financing reforms to improve project viability

Industry leaders in infrastructure and real estate said the Union Budget 2026–27 reinforces long-term growth through sustained public capital expenditure and new financing safeguards aimed at reducing project risk.

Mr. Sebi Joseph, President, Otis India, said the Budget delivers “a powerful push to infrastructure, manufacturing and technology,” adding that the momentum in construction and real estate growth will directly benefit the vertical mobility sector.

Mr. Amit Jain, CMD, Arkade Developers Ltd., said the infrastructure-led approach could improve project feasibility in metro markets, noting that the proposed Infrastructure Risk Guarantee Fund may support large housing developments by improving access to finance.

Echoing similar views, Mr. Manish Bansal, Managing Director, Window Magic, said higher public capital outlay and asset monetisation via REITs and InvITs would strengthen private sector confidence and drive demand for advanced building solutions.

Mr. Parveen Gupta, Director, Ramacivil India, added that the government’s focus on Tier-2 and Tier-3 cities could catalyse employment, connectivity and long-term growth across India’s built environment.

Mr. Sandeep Ahuja, Global CEO, Atmosphere Living, said measures such as CPSE asset recycling, city economic region allocations and simplified tax procedures for NRIs would improve execution certainty and capital flows in hospitality-led real estate.

Legal experts also highlighted structural reforms. Mr. Amit Gupta, Partner, Saraf and Partners, said the Infrastructure Risk Guarantee Fund could ease financing constraints and reduce systemic bottlenecks in project execution.

Industry body representation also welcomed the move. Mr. NS Venkatesh, CEO, Bharat InvITs Association, said policy continuity and predictable cash flows would support long-term investor participation in infrastructure assets.

Stakeholders said effective implementation will be key to translating policy intent into on-ground execution.

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