PM Modi Highlights Focus on Productive Capex in Budget 2026-27, Steering Clear of Populism to Drive ‘Reform Express’
Prime Minister Narendra Modi recently emphasized the significance of productive spending in his government’s approach, highlighting the newly released Union Budget as a strategic move towards sustainable growth rather than short-term populism. In an exclusive interview with PTI, he asserted that the budget reflects a commitment to infrastructure development, aiming to create jobs and enhance the quality of life for citizens. Modi described the budget as a pivotal step in the journey towards a developed India, marking a new phase in his administration’s reform agenda.
Record Capital Expenditure and Economic Growth
During the interview, PM Modi pointed out that the government has significantly increased capital expenditure, scaling it up to Rs 12.2 lakh crore for the fiscal year starting April 1. This represents a fivefold increase since 2013, underscoring the administration’s focus on infrastructure and capital investment as key drivers of long-term economic growth. He noted that productive spending has been a hallmark of his government, contributing to an elevated potential growth rate of 7 percent, as indicated by the pre-Budget Economic Survey.
The Prime Minister stressed that the budget prioritizes spending on essential sectors such as railways, roads, and digital infrastructure. He explained that these investments are designed to create jobs and enhance economic momentum, steering clear of populist measures that do not yield sustainable benefits. Modi stated, “This reflects a conscious strategic choice to invest in assets that create productivity, jobs, and future economic capacity rather than short-term populism.” He reiterated that the government’s focus is on improving the quality of life for citizens and advancing the nation towards its goal of a developed India, or “Viksit Bharat.”
Infrastructure Development: A New Era
PM Modi highlighted the urgent need for high-quality infrastructure, which he believes has been neglected for too long. He remarked that outdated infrastructure poses challenges for both citizens and businesses, stating, “Broken and outdated infrastructure has no place in a nation that aspires to create a Viksit Bharat.” The Prime Minister pointed to the extensive infrastructure development efforts undertaken in recent years, which he described as unprecedented in scale and quality.
He noted significant achievements, including the doubling of the number of airports and the quadrupling of cities with metro services. Investments have also been made in rural roads and internet connectivity, as well as in freight corridors and coastal infrastructure. The budget allocates nearly Rs 3 lakh crore for Indian Railways, focusing on high-speed connectivity and passenger safety. Modi announced plans for seven new high-speed rail corridors to connect major cities, aiming to enhance logistics and reduce costs for industries.
Investment in Emerging Sectors and Governance Reforms
The Prime Minister also emphasized the budget’s commitment to investing in emerging sectors such as biopharma, semiconductors, and electronics manufacturing. He believes these investments will stimulate job creation and attract further investment, thereby strengthening India’s economic future. Modi underscored the importance of governance reforms, stating that the budget reflects a shift towards trust-based governance.
He explained that the government is working to reduce paperwork, decriminalize offenses, and simplify compliance requirements across various sectors. This approach aims to position the state as an enabler, fostering a more efficient and supportive environment for citizens. Modi expressed confidence that these governance reforms will have a profound impact on people’s lives, beyond the numbers typically associated with budgets.
A Vision for the Future: ‘Viksit Bharat’ by 2047
Reflecting on the broader vision for India, PM Modi reiterated his call for urgency in achieving national goals, stating that the current moment represents a collective resolve towards progress. He noted that India is now positioned to engage with the global community in trade and innovation, particularly in a post-pandemic world. The Prime Minister highlighted the potential of India’s young and skilled workforce, coupled with a focus on stable growth and low inflation.
Framing the budget within a historical context, Modi urged that it should not be viewed merely as a financial plan for 2026. He described it as the first budget of the second quarter of the 21st century, aimed at consolidating gains made since 2014 and setting the stage for the next 25 years. Modi drew parallels between current initiatives and those taken in the 1920s that laid the groundwork for India’s independence, asserting that today’s decisions are crucial for realizing the vision of a developed India by 2047.
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