The Union Budget 2026 reflects a decisive policy shift aimed at strengthening structural resilience and accelerating long-term growth, according to Rishi Mehra, Chief Executive Officer, India and Head of Strategy, Human Capital, Asia Pacific at Aon. Mehra said the Budget’s emphasis on “crowding in” private investment through the newly announced Infrastructure Risk Guarantee Fund is a significant step in addressing risk-related constraints that often slow large infrastructure projects. By enhancing credit stability, the initiative is expected to improve investor confidence and unlock private capital for large-scale development.
He noted that the government’s focus on infrastructure and logistics, along with initiatives such as rare earth corridors and dedicated chemical parks, is strategically important for reducing import dependence and securing critical supply chains. These measures, he said, strengthen India’s ability to compete globally while building domestic manufacturing capabilities.
The proposed capital expenditure of ₹12.2 lakh crore further underlines the government’s commitment to investment-led growth. Mehra said this level of public spending provides a strong platform for Indian enterprises to expand operations with lower exposure to volatility.
He also pointed to the upcoming financial sector reforms as a crucial enabler for India’s next growth phase, helping align the financial ecosystem with evolving economic priorities. According to Mehra, the Budget marks a pivotal moment in India’s journey towards becoming a global hub for manufacturing and infrastructure development.
