Calling productive spending the hallmark of his government, Prime Minister Narendra Modi on Sunday said the newly unveiled Union Budget avoided short-term populism and channeled record capital outlays into infrastructure to drive jobs and sustainable growth.
In an exclusive interview to news agency PTI, Modi said the government has used its years in office to plug “structural gaps left behind by earlier administrations”, pursue reforms and lay the foundations for a developed India. He asserted the latest Budget marks the “next level” of that journey.
“This Budget represents the next level in this journey, imparting momentum to our Reform Express,” he said, adding it aims to prepare youth for opportunities in a rapidly changing world.
‘Not now or never moment, it is we are ready moment’
Modi said the Budget should not be seen merely as Budget 2026 but as the first budget of the second quarter of the 21st century.
“This is not a ‘now or never’ moment born out of compulsion. It is a ‘we are ready’ moment born out of preparation and inspiration,” he said, linking it to the goal of Viksit Bharat by 2047.
“We are living in a post-pandemic world order that is opening new doors for India with countries eager to partner with it in trade and innovation,” PM Modi told PTI, hinting at the recently signed FTAs between India-EU, India-New Zealand and India-USA.
Notably, certain terms of the agreement between India and USA are yet to be clarified by both sides as the fine print of the trade deal has not been released. While the US has insisted on India eliminating imports of Russian oil as a prerequisite for reducing tariffs, the joint statement released by the ministry of commerce fails to mention that fact.
Talking about India’s strengths in this changing world order, PM Modi referred to India’s youth and growing skilled population as one of its biggest assets.
“We have a young and increasingly skilled population; and we are focusing on strong growth accompanied by low inflation and macroeconomic stability. Our youth are creating waves in fields as diverse as space, sports and startups. We have ensured political stability and a reform-oriented policy environment,” the prime minister said.
High capex and infrastructure push to create jobs?
The FY27 Budget scales up capital expenditure to Rs 12.2 lakh crore, about five times the level of 2013. The government is prioritising infrastructure creation, logistics expansion and sunrise sectors to drive long-term growth.
PM Modi pointed to figures from the government’s latest Economic Survey to argue that capital accumulation, labour formalisation and digital public infrastructure together have lifted India’s potential growth rate to around 7%.
“Productive spending has been a hallmark of our government. The high capital expenditure reflects our focus on infrastructure and capital investment, strong engines for long-term growth,” he said. The PM added that the Budget consciously invests in assets that create productivity and jobs rather than “short-term populism”.
“This reflects a conscious strategic choice to invest in assets that create productivity, jobs and future economic capacity rather than short-term populism. This shows that our focus is on improving the quality of life for the people, creating jobs for our youth and advancing the nation’s progress towards Viksit Bharat,” Modi said.
Notably, PM Modi’s claim of India’s booming capex spending comes shortly after former finance minister P Chidambaram’s critique of the budget. Chidambaram pointed out that while the absolute number is higher, the Centre’s capital expenditure as a percentage of GDP has actually dipped from 3.2% in 2024-25 to 3.1% in 2025-26.
Chidambaram argued that the government is cutting spending in important welfare-based sectors that directly impact the common person to maintain an illusion of progress.
Next-Gen Infra: Connecting the ‘South Diamond’
A significant portion of the Prime Minister’s remarks were focused on the “speed and scale” of infrastructure development that has taken place under the NDA. In his interview, PM Modi said that the number of cities with metro services in India has quadrupled under the BJP leadership.
As per the prime minister, the doubling of the number of airports in India is visible evidence of this transformation. A capital outlay of nearly ₹3 lakh crore has been earmarked, with a focus on high-speed connectivity and passenger safety.
Seven new corridors are on the anvil, including the South High-Speed Diamond corridor, expected to benefit Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, and Puducherry. Dedicated Freight Corridors (DFCs) are being expanded to reduce logistics costs, while National Highway allocations have surged nearly 500% compared to a decade ago.
Wrapping up the interview PM Modi said his government had 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.
Modi’s remarks come less than 24 hours before the much awaited AI Impact summit in Delhi, which is said to be the largest commemoration of world leaders and tech entrepreneurs on Artificial Intelligence.
While PM Modi maintained the government’s narrative of job growth to be harnessed by investments in emerging sectors. The parliament recently recorded stormy debates in Rajya Sabha around the reduction of allocations for flagship schemes. Chidambaram singled out the Jal Jeevan Mission, stating its funding was “cruelly slashed” from ₹67,000 crore to just ₹17,000 crore in revised estimates.
Opposition members noted a ₹60,000 crore cut in the combined budget for Agriculture and Rural Development. Rahul Gandhi and Mallikarjun Kharge flagged the 15% youth unemployment rate, arguing that the Budget offers no concrete solution for the “precarious employment situation.”