Finance Minister Nirmala Sitharaman unveiled a transformative Union Budget, highlighting significant investments in infrastructure that have shown a strong multiplier effect on the economy. She pledged continued fiscal support for infrastructure over the next five years while balancing other priorities and fiscal consolidation.
This year, ₹11,11,111 crore has been allocated for capital expenditure, representing 3.4% of GDP. The budget includes significant financial packages for Andhra Pradesh and major projects for Bihar, with special multilateral support for the state. An initial allocation of ₹15,000 crore is set for the current fiscal year.
The Finance Minister announced the launch of Phase IV of the Pradhan Mantri Gram Sadak Yojana, aiming to provide all-weather connectivity to 25,000 rural habitations, and announced an industrial nod in Bihar, involving ₹26,000 crore investment..
The budget aims to address irrigation and flood mitigation in Bihar through the Accelerated Irrigation Benefit Programme, providing financial support for projects estimated at ₹11,500 crore, and supporting flood management in Assam, Himachal Pradesh, Uttarakhand, and Sikkim.
Infrastructure Gets Highest Ever ₹11.11 Lakh Crore Allocation in Union Budget 2025
New Delhi – The Indian government has allocated a record ₹11.11 lakh crore for infrastructure development in the Union Budget 2025, marking the highest-ever investment in the sector. This historic allocation underscores the government’s commitment to accelerating economic growth, enhancing connectivity, and modernizing India’s transport, energy, and urban infrastructure.
Unprecedented Boost to Infrastructure Spending
The massive infrastructure allocation represents a 15% increase compared to the previous year, reaffirming the government’s focus on roadways, railways, ports, airports, urban development, and green energy projects. This investment is set to boost employment, attract private sector participation, and create world-class infrastructure across the country.
Finance Minister Nirmala Sitharaman, while presenting the budget, emphasized the role of infrastructure in driving India’s growth, stating:
“Infrastructure development remains a top priority. This record allocation will accelerate ongoing projects, ensure better connectivity, and foster economic expansion.”
Key Focus Areas of the ₹11.11 Lakh Crore Allocation
- Roads & Highways – ₹2.78 lakh crore
- Significant funding for Bharatmala Pariyojana to develop expressways and national highways.
- Accelerated construction of greenfield expressways, logistics corridors, and border roads to enhance trade and connectivity.
- Focus on rural roads and last-mile connectivity under PM Gram Sadak Yojana.
- Railways – ₹2.55 lakh crore
- Modernization of railway stations, high-speed rail corridors, and dedicated freight corridors.
- Investment in new Vande Bharat trains, semi-high-speed rail, and electrification.
- Expansion of metro networks in major cities to ease urban transportation.
- Urban Infrastructure & Smart Cities – ₹1.75 lakh crore
- Strengthening of metro rail, public transport, and housing projects.
- Expansion of the Smart Cities Mission to improve urban planning, sanitation, and digital infrastructure.
- Focus on affordable housing under the PM Awas Yojana (Urban).
- Energy & Renewable Infrastructure – ₹1.50 lakh crore
- Increased investments in solar, wind, and hydroelectric power projects.
- Expansion of green hydrogen and electric vehicle (EV) infrastructure to support clean energy goals.
- Funding for transmission lines, grid expansion, and energy storage solutions.
- Ports, Airports & Logistics – ₹1.25 lakh crore
- Development of new airports and modernization of existing ones under the UDAN scheme.
- Expansion of port capacity and inland waterways to boost trade efficiency.
- Strengthening of multi-modal logistics parks and cargo hubs.
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