Promoting Urbanization and Strengthening Infrastructure

The Budget for Financial Year 2026 (FY26) has introduced several initiatives aimed at enhancing urbanization and upgrading urban infrastructure in India. One of the significant proposals is a ₹1.5 lakh crore allocation for 50-year interest-free loans to states. This move is intended to drive capital expenditure and encourage state-level reforms, signalling a commitment to economic growth and urban development.

Additionally, an Investment Friendliness Index has been introduced. This index will rank states based on their investment-friendly policies and practices, encouraging states to adopt more investor-friendly measures and promote regional growth.

Urban Challenge Fund: A Transformative Initiative

The Budget also announced the creation of a ₹1 lakh crore Urban Challenge Fund aimed at state-level urban development........

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