Finance Minister Nirmala Sitharaman’s Union Budget 2026-27 continues to position infrastructure as the bedrock of India’s economic expansion, with sustained capital expenditure of ₹12.2 lakh crore, the creation of an Infrastructure Risk Guarantee Fund, and ambitious high-speed rail corridors linking major growth hubs. The budget also extends a tax holiday until 2047 for foreign cloud providers establishing data centres in India, a move expected to accelerate digital infrastructure and trigger significant secondary demand in real estate, particularly in Tier-1 and emerging tech cities like Hyderabad.

Industry leaders from real estate, infrastructure, and consumer manufacturing have welcomed the announcements as a stable, long-term signal that balances fiscal discipline with targeted sectoral catalysts, setting the stage for balanced urbanisation, job creation, and manufacturing competitiveness.

Real Estate & Urban Development: Connectivity and Capital Confidence

The budget’s emphasis on high-speed rail networks, City Economic Regions, and structured urban expansion beyond metros has been hailed as a major tailwind for real estate demand and project viability.

Deepak Garg, Founder & Managing Director, ARE Infra Heights Pvt. Ltd., highlighted the positive momentum:

“The continued push on infrastructure spending and the focus on developing growth centres beyond metros send a positive signal for the real estate sector. When connectivity, urban planning, and funding support move in the same direction, it strengthens long-term housing demand and improves project viability. The emphasis on structured development in emerging cities can help create more balanced urban expansion and open new opportunities for both developers and homebuyers.”

He added: “The Budget’s direction reflects stability and long-term planning, which are essential for real estate growth. Measures that improve infrastructure momentum, encourage investment through structured instruments, and reduce execution risk can boost confidence across the sector. A predictable policy environment allows developers to plan better and gives homebuyers greater assurance about future value, which is crucial for sustained market sentiment.”

Ms. Aparna Reddy, Executive Director, Aparna Enterprises Ltd., underscored the construction sector linkage:

“We welcome the Union Budget 2026–27, which reinforces infrastructure as a key pillar of India’s growth journey. The enhanced capital expenditure allocation of ₹12.2 lakh crore signals continued support for large-scale construction and connectivity projects, helping sustain momentum across the infrastructure ecosystem. The proposed Infrastructure Risk Guarantee Fund addresses an important challenge in project execution by helping mitigate risks during the construction and early development phases. By improving financing confidence for developers and lenders, this measure can contribute to stronger project viability and more predictable execution timelines. The Budget’s emphasis on planned urban development through City Economic Regions, along with continued infrastructure expansion in Tier II and Tier III cities, reflects an approach that supports more balanced urban growth beyond traditional metropolitan centres. As these emerging cities continue to grow, improved connectivity and infrastructure are expected to drive demand for housing, commercial real estate, and supporting urban amenities. This expansion will translate into sustained construction activity and steady demand for high-quality building materials such as cement and concrete.”

Hyderabad’s Strategic Advantage: High-Speed Rail and Data Centre Magnetism

The proposed high-speed rail corridors connecting Hyderabad with Bengaluru, Chennai, and Pune, combined with the long-term tax holiday for data centres, position the city as a convergence point for IT, pharma, GCCs, aerospace, and advanced manufacturing.

Mr. Ajitesh Korupolu, Founder and CEO of ASBL, said:

“As a developer rooted in Hyderabad’s growth journey, ASBL sees the Union Budget 2026 as a clear signal that the city is being positioned as a strategic anchor in India’s next phase of connectivity-led development. The proposed high-speed rail network linking Hyderabad with Bengaluru, Chennai, and Pune is not merely about faster travel, it establishes Hyderabad as the central convergence point of India’s most powerful economic ecosystems. Bengaluru may lead in IT, Chennai in manufacturing, and Pune in industrial-technology integration, but Hyderabad already integrates all three at scale and more. As India’s largest pharmaceutical hub, a rapidly expanding GCC powerhouse, and a growing centre for aerospace and advanced manufacturing, the city is uniquely placed to extract maximum economic value from this tri-city connectivity. This infrastructure will not distribute growth evenly, it will compound it where capability already exists, and Hyderabad stands to gain the most. With over 355–360 Global Capability Centres employing more than 3,00,000 professionals, the addition of 35 Fortune 500 GCCs in 2025 alone, and sustained investment momentum across life sciences and technology, enhanced rail connectivity will further accelerate capital inflows, high-quality job creation, and GDP expansion for the city.”

Mr. Karteesh Reddy, CEO of GHR Infra, added:

“The Union Budget 2026 certainly charts a forward-looking roadmap for India’s and especially Hyderabad’s real estate industry. While high‑speed rail connectivity across key growth corridors (announced in the budget) will clearly strengthen Hyderabad’s realty, the extended tax holiday till 2047 for foreign companies establishing cloud service data centres in India will likely have significant and positive impact on the city’s realty developers, home buyers, and residents as well. Major companies with data centers in Hyderabad already include global technology giants, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, alongside major colocation providers, such as CtrlS, and NTT. Considering that the tax holiday would mean over 20 years of tax-free operations for global cloud businesses, this will attract many more global companies to Hyderabad. This surge will likely drive ancillary demand for high-quality housing and integrated urban ecosystems. At GHR Infra, we see this as additional cushion that will aid Hyderabad’s next growth chapter. Also, our focus remains on crafting sustainable, wellness-driven communities that align with the government’s vision, creating spaces that foster livability, inclusivity, and resilience, while positioning Hyderabad as India’s model city for future-ready living.”

Consumer Manufacturing: Predictability and MSME Support

The budget’s MSME-focused measures, including the ₹10,000 crore SME Growth Fund, TReDS liquidity enhancements, and duty rationalisation for inputs, have been praised for creating a stable environment for D2C and consumer brands.

Yashesh Mukhi, Founder, Chupps, noted:

“Budget 2026–27 reinforces a long-term, system-building approach to growth, one that is especially encouraging for consumer manufacturing startups. The combination of fiscal discipline, sustained public capital expenditure, and targeted MSME support creates a far more predictable environment for founders building at scale. Measures such as the ₹10,000 crore SME Growth Fund, stronger liquidity via TReDS, and credit guarantees for invoice discounting directly address long-standing cash-flow and working-capital challenges for growing D2C brands. For sectors like footwear, apparel, and leather, the expansion of duty-free input limits and longer export timelines materially improve competitiveness while supporting domestic value creation. The dedicated focus on high-quality sports goods manufacturing also signals a shift towards design- and performance-led product categories, including footwear and sportswear where India can build global relevance. By supporting both production and demand, the Budget creates a more stable growth environment for consumer-facing brands like ours. As India progresses towards its Viksit Bharat vision, this Budget gives founders the confidence to invest for the long term: in better materials, stronger supply chains, and globally credible Indian brands.”

The Union Budget 2026-27 delivers a disciplined yet decisive push for infrastructure-led urbanisation, digital economy acceleration, and manufacturing resilience. With Hyderabad emerging as a major beneficiary of connectivity and data-centre incentives, and real estate poised for sustained demand, the budget’s success will depend on timely execution, risk mitigation, and coordination across central and state levels to realise its vision of balanced, inclusive growth.

Last Updated on: Wednesday, February 4, 2026 11:28 pm by Pioneer Today Team | Published by: Pioneer Today Team on Wednesday, February 4, 2026 11:28 pm | News Categories: India

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