Industry urges higher capital spending as Telangana prepares Budget for 2026-27

As Telangana readies its Budget for 2026-27, industry bodies have called for a sharper emphasis on capital expenditure, arguing that sustained investment in infrastructure will be critical to maintaining the state’s growth momentum.

Representatives from industry associations have flagged concerns over the relatively modest share of capex in recent budgets, estimating it at around a quarter of total expenditure. They have urged the government to step up allocations towards power, transport networks, urban infrastructure and support systems for micro, small and medium enterprises.

The demand comes against the backdrop of Telangana’s efforts to position itself as a preferred destination for manufacturing and services. Industry stakeholders contend that while policy support has been consistent, gaps in physical infrastructure could constrain future investments if not addressed in time.

Among the priorities highlighted are improvements in road connectivity, expansion of industrial parks, reliable power supply and infrastructure that supports emerging sectors. There is also a push for targeted spending that can strengthen linkages between urban centres and surrounding districts.

The state government faces the task of balancing these expectations with fiscal constraints, particularly as welfare commitments continue to account for a significant share of expenditure. The extent to which it is able to increase capital outlay without straining finances will be closely watched.

For industry, the upcoming budget is seen as an opportunity to reinforce the role of infrastructure in driving long-term economic expansion rather than relying primarily on short-term support measures.