Union Budget 2026: A Clear Roadmap for Aatmanirbhar Bharat

The Union Budget 2026 places strong emphasis on infrastructure development, regional growth, and the empowerment of micro, small, and medium enterprises (MSMEs), which will drive India’s next phase of economic expansion, said Dr. Niranjan Hiranandani, Chairman of NAREDCO and the Hiranandani Group.

Dr. Niranjan Hiranandani, Chairman of NAREDCO and the Hiranandani Group, welcomed the Union Budget 2026. He highlighted that the budget is a clear and forward-looking roadmap for building an Aatmanirbhar Bharat.

The budget's emphasis on infrastructure development, regional growth, and the empowerment of MSMEs is expected to drive India's next phase of economic expansion. Dr. Hiranandani noted the government's proposal to increase public capital expenditure to Rs 12.2 lakh crore, describing it as a decisive step that will create strong multiplier effects across key sectors such as real estate, construction, logistics, and allied industries. He emphasized that the focus on better execution and policy certainty will improve investor confidence and support long-term, sustainable development.

One of the most important features of the Budget, according to Dr. Hiranandani, is the move away from a metro-centric growth model. The introduction of City Economic Regions (CERs) aims to integrate Tier-2 and Tier-3 cities, temple towns, and surrounding rural areas into unified economic zones. Each CER will receive Rs 5,000 crore through a challenge-based funding model. This approach will improve connectivity, competitiveness, and liveability, and create balanced regional growth across the country.

The budget's focus on logistics, warehousing, and data centre infrastructure will help India strengthen its position as a global supply chain and digital hub. Investments in multimodal logistics parks and cold chains are expected to reduce costs and wastage, directly benefiting manufacturers and exporters. Dr. Hiranandani said simplified customs processes and safe-harbour norms will further improve ease of doing business. The extension of tax holidays for data centres till 2047, along with incentives for green and sustainable infrastructure, will attract foreign investment and support India's fast-growing digital economy.

The Budget also recognises hospitality and tourism as major growth drivers. Improved connectivity and rising domestic travel are likely to increase demand for hotels, mixed-use developments, and destination-based real estate, creating jobs and boosting local economies. Commercial real estate is expected to benefit from expanding urban centres, better mobility, and increased demand from MSMEs, service industries, and global capability centres.

In addition, public sector enterprises will be allowed to unlock the value of government-owned land and buildings through Real Estate Investment Trusts (REITs). This move will help recycle capital and fund new infrastructure projects.

A dedicated investment of Rs 75,000 crore for logistics and warehousing will support the development of modern warehouses, cold storage facilities, and multimodal transport hubs. Safe-harbour norms for bonded warehouses will lower compliance costs and improve efficiency for exporters. The extended tax benefits and incentives for foreign data centre and cloud service providers will position India as a leading global data hub, driving innovation and long-term investment.

To address execution and financing risks in infrastructure projects, the Budget proposes the creation of an Infrastructure Risk Guarantee Fund. This fund will provide partial guarantees to lenders, reduce borrowing costs, and encourage private sector participation in large infrastructure projects.

The government has reaffirmed its commitment to affordable housing by continuing the PM Awas Yojana, with an allocation of Rs 79,000 crore. Hiranandani said this sustained support will improve housing access while boosting construction and allied sectors, making housing a key pillar of inclusive urban growth.

Dr. Hiranandani said the Union Budget 2026 presents a pragmatic and future-ready framework for building competitive cities and strong economic regions. With its focus on regional integration, infrastructure investment, affordable housing, and policy stability, the budget is expected to unlock new growth opportunities beyond major cities and strengthen India's global economic position.