India’s real estate and infrastructure sectors are entering a more mature phase of capital formation, and the Union Budget 2026 has an opportunity to strengthen the role of private credit and structured finance in supporting sustainable growth. With residential demand remaining resilient across segments and nearly INR 18,000 crore already raised through capital markets in FY26 YTD, policy continuity and financial innovation will be critical to sustaining momentum.

From a private credit and alternative investment standpoint, we expect the Budget to focus on improving capital access for mid-market developers, enabling last-mile funding for stalled projects, and accelerating redevelopment-led urban renewal. Greater regulatory clarity for Category II AIFs, improved tax pass-through visibility, and wider participation from domestic institutional capital would further deepen India’s alternative investment ecosystem.

Continued emphasis on urban infrastructure, transit-oriented development, and redevelopment, particularly in high-density markets, along with faster approvals and predictable tax treatment, can meaningfully improve risk-adjusted returns for investors while strengthening long-term financial stability across the sector.