The Union Budget 2026 has laid out a strong development roadmap for poll-bound states especially West Bengal, with a major emphasis on developing infrastructure, improving connectivity, generating jobs, and developing rural industries.
During the Budget announcement by Finance Minister Nirmala Sitharaman, she reiterated that the government would continue to emphasise public investment in infrastructure, especially in cities and regions that have the potential to be the engines of sustainable growth and job creation.
New freight corridors, expansion of national waterways
One of the most important aspects of the Budget is the development of new dedicated freight corridors that will help optimise the transportation of goods across the country. One such corridor will be developed from Dankuni in the eastern part of the country to Surat in the western part of the country, which will help reduce the cost of logistics and alleviate the pressure on the existing transport infrastructure.
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The government also plans to develop 20 new national waterways in the next five years. These waterways are expected to help optimise the transportation of goods in a cleaner and more sustainable manner, while also reducing fuel consumption and alleviating pressure on the existing transport infrastructure.
Capital expenditure raised to ₹12.2 Lakh Crore
The capex budget for 2026-27 has been increased to ₹12.2 lakh crore, which is one of the biggest allocations for infrastructure. The finance minister highlighted that the government’s spending on capital has been rising steadily from ₹2 lakh crore in 2014-15 to ₹11.2 lakh crore in 2025-26.
With this new boost, the government will now focus on sustaining growth while also developing the country’s physical and digital infrastructure. Special attention will be given to Tier-2 and Tier-3 cities with a population of over five lakh, which are considered to be the future engines of growth.
₹10,000 Crore SME growth fund announced
For the small business sector, the Budget has announced the launch of a new ₹10,000 crore SME Growth Fund. This fund will support small and medium-scale enterprises to grow, innovate, and provide employment opportunities, which will be incentivised based on employment and productivity.
Focus on rural industries and traditional sectors
The Budget has also announced the launch of the Mahatma Gandhi Gram Swaraj Initiative, which will focus on skill development, quality enhancement, and market access, including access to international markets, which will support rural livelihoods and traditional sectors under the One District One Product scheme.
