New Delhi, March 18 (NationPress) India's public capital expenditure has soared from Rs 2 lakh crore in FY15 to a projected Rs 12.2 lakh crore in FY27. The Union Budget for 2026–27 revealed innovative initiatives such as the Infrastructure Risk Guarantee Fund and City Economic Regions aimed at promoting infrastructure-driven growth, as announced by the government on Wednesday.

Organizations like the National Investment and Infrastructure Fund (NIIF) and the National Bank for Financing Infrastructure and Development (NaBFID) have attracted billions in both global and domestic investments, thereby enhancing governance and facilitating long-term financing, according to an official statement.

To tackle the issues related to early-stage project development, including risks, delays, and execution uncertainties, the government has launched the Infrastructure Risk Guarantee Fund. This fund will offer partial guarantees to lenders, thereby minimizing default risks for private developers and enhancing financial security.

In addition, to maximize the potential of urban areas, the Union Budget for 2026-27 introduced City Economic Regions (CERs) and has allocated Rs 5,000 crore for each CER over a span of five years.

Through asset monetization via Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), over Rs 1.5 lakh crore has been unlocked, recycling funds into new projects and attracting international investors.

For the last decade, India has consistently prioritized large-scale investments in infrastructure, viewing it as a vital factor for inclusive growth and global competitiveness. The World Bank ranks India among the top five low to middle-income nations for job creation in the infrastructure sector, as stated by the government.

The NIIF currently manages $4.9 billion in assets and is focused on creating scalable platforms across transportation, energy, and digital infrastructure, either through its own teams or by collaborating with seasoned operators.

The NaBFID aims to bridge gaps in long-term non-recourse financing, support the development of bond and derivatives markets, and promote sustainable economic growth. As of December 2025, the bank has sanctioned around Rs 3.03 lakh crore and disbursed approximately Rs 1.09 lakh crore for core infrastructure and social sectors.

The Union Budget for 2026-27 also announced the establishment of dedicated REITs for Central Public Sector Enterprises (CPSEs) to expedite the monetization of governmental real estate assets.

aar/pk