Government's Infrastructure Investment Priorities
Finance Minister Nirmala Sitharaman will present Union Budget 2025 in Parliament today. Major steps are likely to be announced for the infrastructure sector to boost economic growth. Rumki Majumdar, Economist at Deloitte, expects the government to maintain its strong commitment to infrastructure investment, recognizing it as a key driver of broader economic growth. "We anticipate sustained growth in social, physical and digital infrastructure spending will be prioritised. The government is expected to expand road networks, develop multi-modal logistics parks and improve overall logistical infrastructure to support efficient economic activity," said Majumdar.

Key Infrastructure Sectors in Focus
According to Axis Securities, the government is expected to focus on key infrastructure segments such as roads, railways, airports, and urban infrastructure. With the government focusing on expanding the road network, a 10%-15% higher allocation YoY for the Ministry of Road Transport & Highways is expected. On similar lines, railways should also witness a higher budgetary allocation in 2025-26. More measures to improve long-term funding availability for the infrastructure sector are expected, added the brokerage.

Stocks Poised to Benefit from Infrastructure Spending
"With the heightened government focus on developing the overall infrastructure of the country, particularly in highways, railways, and urban infrastructure, companies operating in these segments are poised to encounter massive opportunities," said the brokerage. It is positive on stocks such as H.G Infra, RITES, KPIL, KEC International, J Kumar Infraprojects and Ahluwalia Contracts. Bajaj Broking expects the government to put infra high on its Budget agenda, stating that if Budget 2025 announces large-scale projects, like additional Dedicated Freight Corridors, it will be a major positive development for the country's infrastructure.