The Union Budget 2026–27 outlines increased spending on defence, infrastructure and urban development, with allocations aimed at military modernisation, expansion of logistics networks, and support for city-led economic growth across regions.

Defence

The Union Budget 2026–27 has allocated ₹7.8 lakh crore for defence. Of this, ₹2.19 lakh crore has been set aside for modernisation of the armed forces, covering acquisitions such as Rafale fighter jets, submarines and unmanned aerial vehicles.

Infrastructure and Logistics

An Infrastructure Risk Guarantee Fund has been proposed to reduce lending risks, while central public sector enterprises will monetise real estate assets through dedicated REITs. New Dedicated Freight Corridors are planned on the Dankuni–Surat route.

The Budget proposes operationalisation of 20 new National Waterways and development of an inland waterways ship repair ecosystem. A Coastal Cargo Promotion Scheme aims to raise the share of coastal cargo to 12 per cent by 2047. A seaplane viability gap funding scheme has been announced to support domestic manufacturing.

Also Read: Union Budget 2026: Key Governance Updates and Policy Highlights

States will receive ₹2 lakh crore under the SASCI scheme. The Purvodaya programme will focus on integrated industrial corridor development along the East Coast.

Urbanisation and Cities

The Budget proposes the creation of City Economic Regions to drive agglomeration-led growth, with emphasis on Tier-II and Tier-III cities and temple towns. Seven high-speed rail corridors have been identified as growth connectors, along with plans for sustainable inter-city passenger transport systems.

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