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Moneycontrol28-01-2026, 15:48

Union Budget 2026-27: Turning Public Capex Momentum into Private Capital

  • The upcoming Union Budget 2026-27 shifts focus from public capital expenditure's effectiveness to translating its momentum into sustained private and foreign investment.
  • Long-term investors prioritize project readiness, clear regulatory approvals, and consistent execution between central and state levels over pipeline size.
  • Reducing non-market risks like delays and regulatory ambiguity is crucial; a Capital Expenditure Efficiency Framework (CEEF) and robust single-window clearance are expected.
  • Stability in taxation, reduced disputes, and simplified compliance for foreign portfolio investors are key to boosting capital market confidence.
  • Key sectors for investment include renewable energy, electronics, data centers, defense manufacturing, and advanced clean-energy technologies, with a focus on strengthening MSMEs.

Why It Matters: The Budget must focus on predictability, execution, and policy continuity to attract long-term private and foreign capital.

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