Union Budget 2026 Expected to Boost Capital Expenditure with Sectoral Focus

The upcoming Union Budget 2026, to be presented on February 1, is expected to prioritize capital expenditure with a projected 10-15% increase, targeting around Rs 12 trillion. The government is likely to maintain fiscal discipline while focusing on selective sectors such as defence, railways, and infrastructure-linked manufacturing. Proposed incentives worth up to Rs 23,000 crore aim to boost domestic capital goods production, particularly in construction equipment and the automobile value chain. Experts note capacity constraints may limit rapid capex growth, with private sector investment remaining cautious.