New Delhi, Feb 15 – Prime Minister Narendra Modi on Sunday said that productive spending is a key feature of his government's policies. He stated that the recently unveiled Union Budget deliberately avoids short-term populist measures and instead focuses on significant investments in infrastructure to create jobs and promote sustainable growth.
In an exclusive interview with PTI, Modi said his government has used its time in office to address "structural weaknesses" that existed before, pursue bold reforms, and lay the foundation for a developed India. He asserted that the latest budget marks a "new stage" in this journey.
Modi described the budget for the fiscal year starting April 1 as a reflection of his approach to governance, saying it "accurately reflects our governance style and priorities."
"This budget represents the next step in this journey, providing momentum to our 'Reform Express.' It is designed to accelerate progress and prepare our youth for the opportunities presented by a rapidly changing world," Modi told PTI.
He cited the pre-budget Economic Survey, which stated that capital accumulation, labour formalization, and digital public infrastructure together have boosted India's potential growth rate to 7 per cent.
"Productive spending has been a hallmark of our government. The significant capital expenditure reflects our focus on infrastructure and capital investment, which are key drivers of long-term growth," Modi said in his written statement to PTI.
The FY27 budget significantly increases capital expenditure to Rs 12.2 lakh crore – a five-fold increase compared to 2013 – as the Modi government continues its strategy of prioritizing infrastructure creation, logistics expansion, and investment in key sectors to drive long-term growth. The budget emphasizes spending on rail, roads, digital and energy infrastructure, along with measures to simplify compliance and improve credit flow as key drivers of job creation and economic growth.
"This reflects a deliberate strategic choice to invest in assets that create productivity, jobs, and future economic capacity, rather than short-term populism. This demonstrates our focus on improving the quality of life for citizens, creating jobs for our youth, and advancing the nation's progress towards 'Viksit Bharat'," Modi said.
For a long time, Modi said, high-quality infrastructure had been neglected, posing a challenge for people and Indian businesses.
"Broken and outdated infrastructure has no place in a nation aspiring to create a 'Viksit Bharat'," he said.
"Therefore, we have revolutionized the sector through speed, scale, and a focus on creating next-generation infrastructure, while also upgrading existing infrastructure. Over the past decade or so, India has seen perhaps the most extensive infrastructure-building effort in its history, with a strong emphasis on quality! The most important aspect of this has been the way we have created infrastructure with the future in mind."
Highlighting the scale of expansion, he said the number of airports has doubled, with thousands of new aircraft orders, the number of cities with metro services has more than quadrupled, rural roads and internet connectivity are expanding rapidly, and significant investments are being made in the expansion of freight corridors, ports, and coastal connectivity.
On sectoral allocations, he said that almost Rs 3 lakh crore has been allocated to the Indian Railways, with a focus on high-speed connectivity, freight capacity, and passenger safety. Seven new high-speed rail corridors are planned to connect major Indian cities, including the South High-Speed Diamond corridor, which will significantly benefit states like Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, and Puducherry.
At the same time, Dedicated Freight Corridors are being expanded to reduce congestion on passenger routes and lower logistics costs for industries.
Allocations for national highways have increased nearly 500 per cent compared to a decade ago.
Highlighting investments in emerging sectors, Modi said investments are being made in key sectors, including biopharma, semiconductors, electronics component manufacturing, rare earth corridors, and chemical parks. "These will provide new impetus to jobs and investment while strengthening India's future."
Emphasising governance reforms, the prime minister said, "An important feature of this budget has been our continued focus on trust-based governance. Across sectors, ministries, and processes, we are significantly reducing paperwork, decriminalising offences, and simplifying compliance requirements. This is because we see the state as an enabler, and we trust citizens. This will have a far greater impact on people's lives than the numbers in typical budgets."
Modi said his government has built "an inclusive, tech-driven yet human-centric welfare architecture that reaches the last mile and leaves no one behind," with nation-building and economic strengthening as its guiding principles.
Recalling his call from the Red Fort – 'Yahi Samay Hai, Sahi Samay Hai' (now is the time, the right time) – Modi said that this sense of urgency has now become a "national conviction".
"The 'now is the time' sense of purpose that you are alluding to has always been within us. But today, this sense of urgency has become a national conviction, a whole-of-society resolve," he said.
Describing India's positioning in a changing global order, Modi said, "We are living in a post-pandemic world order that is opening new opportunities for India; countries eager to partner with us in trade and innovation; we have a young and increasingly skilled population; and we are focused on strong growth accompanied by low inflation and macroeconomic stability."
Framing the Budget in long-term terms, he said the document should not be seen just as Budget 2026. "This is the first budget in the 21st century. This budget consolidates the gains made since 2014 and builds upon them to create momentum for the next quarter-century."
"Just as the decisions and initiatives taken in the 1920s laid the foundation for independence in 1947, the decisions we are taking now are laying the foundation for 'Viksit Bharat' by 2047," he added.
