India Boosts State Infrastructure with 1.5 Trillion Rupee Interest-Free Loan Package

In a major push for infrastructure development, India's Finance Minister Nirmala Sitharaman announced a 1.5 trillion rupee ($18 billion) allocation for 50-year interest-free loans to states in the 2025-26 Union Budget. This significant investment aims to stimulate economic growth and support state-level infrastructure projects. The move comes as part of the government's strategy to maintain strong fiscal support for infrastructure while balancing other priorities. This initiative is expected to accelerate capital expenditure and foster cooperative fiscal federalism across India.

Source: Union Budget 2025-26 presented by Finance Minister Nirmala Sitharaman