FM Sitharaman Announces High-Speed Rail, Waterways Expansion, and MSME Growth Fund

Budget 2026-27: New Delhi: Union Finance Minister Nirmala Sitharaman presented the third Union Budget of the central government’s third term and her ninth consecutive budget for 2026-27, with a strong focus on strengthening India’s infrastructure. The budget includes major announcements for railways, aviation, and water transport, aimed at improving connectivity, lowering logistics costs, and boosting economic growth.

A landmark decision in the budget is the approval of seven high-speed rail corridors to connect major industrial and economic hubs with fast and modern rail services. The proposed corridors are Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri. These corridors are expected to transform inter-city travel and enhance industrial linkages across the country.

In the waterways sector, 20 new national waterways will be operationalized over the next five years, beginning with National Waterway-5 in Odisha. This route will link mineral-rich regions like Talcher and Angul with the Kalinganagar industrial hub and the Paradip and Dhamra ports, promoting eco-friendly and cost-effective cargo movement. The budget also proposes a modern ecosystem for ship repair and maintenance in Varanasi and Patna and introduces a Viability Gap Funding (VGF) scheme for seaplanes to expand air-water connectivity.

To support businesses, the Finance Minister announced a ₹10,000 crore growth fund for Micro, Small, and Medium Enterprises (MSMEs), aimed at helping entrepreneurs scale up operations. Special incentives have also been announced for the textile sector to boost employment and exports.

Additional initiatives include the creation of an Infrastructure Risk Guarantee Fund and the launch of a Coastal Cargo Promotion Scheme. The government will also provide targeted training for youth to develop skilled manpower in the waterways sector, creating new employment opportunities and strengthening human capital.

Overall, Budget 2026-27 reflects a strong push toward modern infrastructure, sustainable transport, and enterprise growth, with the aim of enhancing economic efficiency, creating jobs, and accelerating India’s long-term development.