PM Modi Champions Productive Spending as Core Governance Principle
In a comprehensive interview with news agency PTI, Prime Minister Narendra Modi emphasized that his government's defining characteristic has been its commitment to productive spending. He stated that the recently unveiled Union Budget deliberately avoided short-term populist measures, instead directing record capital investments toward infrastructure development to fuel job creation and sustainable economic expansion.
Strategic Shift from Populism to Long-Term Investment
Prime Minister Modi asserted that his administration has systematically addressed structural deficiencies inherited from previous governments, implementing bold reforms to establish the groundwork for a developed India. He described the Budget for the fiscal year starting April 1 as a clear embodiment of his governance philosophy, marking the "next level" in this transformative journey.
"This Budget represents the next level in this journey, imparting momentum to our 'Reform Express.' It is designed to accelerate momentum and prepare our youth for the opportunities of a rapidly changing world," the Prime Minister told PTI.
He highlighted that productive spending has been a hallmark of his government, with the elevated capital expenditure reflecting a strategic focus on infrastructure and capital investment as powerful engines for long-term growth.
Fivefold Increase in Capital Outlay Since 2013
Citing the pre-Budget Economic Survey, PM Modi noted that capital accumulation, labor formalization, and digital public infrastructure have collectively raised India's potential growth rate to 7 percent. The FY27 Budget escalates capital expenditure to Rs 12.2 lakh crore, representing a fivefold increase compared to 2013 levels.
This substantial allocation reinforces the government's strategy of prioritizing infrastructure creation, logistics expansion, and investments in emerging sectors to drive sustained economic progress. The Budget emphasizes spending on rail, roads, digital infrastructure, and energy systems, alongside measures to streamline compliance and enhance credit availability as central mechanisms for job creation and economic momentum.
"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," PM Modi explained.
Unprecedented Infrastructure Expansion Across Sectors
The Prime Minister criticized the historical neglect of high-quality infrastructure, which had created challenges for both citizens and businesses. "Broken and outdated infrastructure has no place in a nation that aspires to create a Viksit Bharat," he declared.
He detailed how his government has revolutionized the sector through unprecedented speed, scale, and focus on creating next-generation infrastructure while upgrading existing systems. Over the past decade, India has witnessed perhaps the most extensive infrastructure-building effort in its history, with an unprecedented emphasis on quality and future-oriented planning.
Highlighting the scale of this expansion:
- The number of airports has doubled, with thousands of new aircraft orders placed
- Cities with metro services have more than quadrupled
- Rural road networks and internet connectivity have expanded rapidly
- Significant investments have been made in freight corridors, ports, and coastal connectivity
Regarding specific sectoral allocations, the Prime Minister revealed that nearly Rs 3 lakh crore has been earmarked for Indian Railways, prioritizing high-speed connectivity, freight capacity enhancement, and passenger safety. Seven new high-speed rail corridors are proposed, including the South High-Speed Diamond corridor connecting Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, and Puducherry.
Dedicated Freight Corridors are being expanded to decongest passenger routes and reduce logistics costs for industry. National highway allocations have increased by nearly 500 percent compared to a decade ago.
Investments in Emerging Sectors and Governance Reforms
PM Modi emphasized that the Budget also accelerates investments in sunrise sectors such as biopharma, semiconductors, electronics component manufacturing, rare earth corridors, and chemical parks. "These will provide a new impetus to jobs and investment while strengthening India's future," he stated.
On governance reforms, the Prime Minister highlighted the continued emphasis on trust-based governance. "Across sectors, ministries, and processes, we are massively reducing paperwork, decriminalising offences, and reducing compliance requirements. This is because we envisage the state as an enabler, and we trust the citizens. This will have a far deeper impact on people's lives than the numbers in typical budgets," he explained.
He added that his government has constructed an inclusive, technology-driven yet human-centric welfare architecture that reaches the last mile and leaves no one behind, guided by principles of nation-building and economic strengthening.
Long-Term Vision for Viksit Bharat by 2047
Recalling his Red Fort call of "Yahi Samay Hai, Sahi Samay Hai" (now is the time, the right time), PM Modi said that initial sense of urgency has evolved into a "national conviction" and a "whole-of-society resolve."
Positioning India within the changing global order, he noted that the country operates in a post-pandemic world where nations are increasingly keen to partner with India in trade and innovation. He highlighted India's young and increasingly skilled population, along with a focus on maintaining strong growth alongside low inflation and macroeconomic stability.
Framing the Budget in historical terms, PM Modi urged that it should not be viewed merely as Budget 2026. "This is the first budget in the second quarter of the 21st century. This budget consolidates the gains made since 2014 and builds upon them to impart momentum for the next quarter-century," he asserted.
Drawing a historical parallel, he concluded: "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."
