Pre-budget expectation quote on the construction sector - ICRA 

Mr. Ashish Modani - Senior Vice President & Group Head, Corporate Ratings, ICRA 

"The Union Budget 2025-2026 is expected to underscore the Government's continued dedication towards the National Infrastructure Pipeline (NIP) with critical focus on PM Gati-Shakti National Master Plan and Jal Jeevan Mission (JJM), among others. ICRA expects the GoI’s capex to undershoot the FY2025RBE (Rs 11.1 trillion) by at least Rs 1.0 trillion, though it would still remain higher than the capex outlay in FY2024 PA. Given the GoI’s continued thrust on infrastructure, ICRA expects capital outlay to witness 10-12% YoY growth in FY2026 BE. The Road and the Railway segments will continue to account for a bulk of the allocation. The outlay towards JJM, urban infrastructure and affordable housing, however, is expected to witness healthy YoY growth in the upcoming budget."