India Unveils Record $133 Billion Infrastructure Push in National Budget

India has announced a record allocation of $133 billion for infrastructure development in its latest national budget, marking a major push to sustain economic growth through large-scale public investment. Finance Minister Nirmala Sitharaman unveiled the plan during her budget speech in parliament on Sunday.

The infrastructure outlay represents an increase of nearly nine percent compared to last year’s budget. Sitharaman said public capital expenditure has risen sharply from around $21 billion in the 2014–15 fiscal year to an “all-time high” level, underscoring the government’s long-term focus on infrastructure-led growth.

Key priority areas include the development of high-speed rail networks, data centres, artificial intelligence, and the mining and processing of rare earth minerals. The budget proposes seven high-speed rail corridors linking major cities such as Mumbai, Bengaluru, Hyderabad, Pune, and Chennai, aimed at improving connectivity and boosting economic activity.

The finance minister emphasized that massive infrastructure spending is critical for supporting India’s position as the world’s fastest-growing major economy, while also creating millions of jobs and strengthening domestic manufacturing. Prime Minister Narendra Modi echoed this sentiment, stating that India aims to become the world’s third-largest economy and that the new budget provides a clear roadmap to accelerate domestic production and self-reliance.

Several export-oriented sectors, including textiles, pharmaceuticals, electronics, and chemicals, have been identified as key growth drivers. Sitharaman announced plans to develop three chemical business parks and establish mega textile hubs. Additionally, around $5 billion has been allocated to strengthen domestic electronics manufacturing.

The budget also places strong emphasis on emerging technologies. Sitharaman announced a tax holiday until 2047 for foreign companies that provide global cloud services using data centres based in India. The government further pledged financial support to expand India’s growing semiconductor industry, building on recent investments by global technology giants such as Amazon, Google, and Microsoft in artificial intelligence and data centre infrastructure.

On the minerals front, the budget proposes the creation of “dedicated rare earth corridors” in four mineral-rich states in southern and eastern India to secure critical supply chains.

The announcement comes amid a challenging global trade environment. It is the first budget since the United States imposed 50 percent tariffs on most Indian imports last August, prompting ongoing trade negotiations between New Delhi and Washington. While ties with the US have faced strain over India’s purchase of Russian oil, India recently signed a major trade agreement with the European Union.

Addressing these challenges, Sitharaman said India is navigating a global environment where trade, multilateralism, and supply chains face disruptions, but reaffirmed the government’s commitment to achieving “Vikasit Bharat” (Developed India) by balancing ambition with inclusive growth.