Union Budget 2026 boosts urban housing, infrastructure and freight connectivity

The Union Budget 2026–27 has laid out significant allocations and initiatives for real estate, urban development, and transportation infrastructure. The Pradhan Mantri Awas Yojana (PMAY)–Urban has been allocated ₹18,625 crore, with an additional ₹3,000 crore earmarked for PMAY–Urban 2.0 to accelerate urban housing construction and completion.

The Budget also proposes recycling real estate assets of Central Public Sector Enterprises (CPSEs) via dedicated Real Estate Investment Trusts (REITs), alongside a ₹10,000 crore Urban Challenge Fund to finance urban redevelopment, brownfield projects, and innovative city infrastructure.

To improve logistics and transport, the government plans new Dedicated Freight Corridors connecting Dankuni in the East to Surat in the West and operationalising 20 new National Waterways linking mineral-rich areas, industrial centres, and ports. A Coastal Cargo Promotion Scheme aims to raise the share of inland waterways and coastal shipping from 6% to 12% by 2047.

For urban amenities, the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) has been allocated ₹8,000 crore to strengthen water supply, sewerage, and drainage infrastructure across cities.

These measures signal a focused push to integrate urban housing, transport, and infrastructure development into India’s long-term growth and sustainability agenda.