Run-up to FY27 Budget: Which sectors got biggest boost in last 3 Budgets?

The Confederation of Indian Industry expects the FY27 Budget to focus strongly on boosting investments to sustain India's high growth momentum

The Finance Ministry started the Budget preparation exercise for 2026–27 on October 9. The upcoming Budget is expected to focus on boosting demand, creating jobs and placing the economy on a sustained growth path of over 8 per cent.

 

Union Finance Minister Nirmala Sitharaman is likely to present the FY27 Budget on February 1, 2026. It comes against the backdrop of strong growth in gross domestic product (GDP) of 8.2 per cent in the September quarter and a sharp fall in inflation. The Budget also follows geopolitical challenges such as the imposition of a 50 per cent US tariff, which has affected several sectors, including textiles and seafood.

 

 

Ahead of the FY27 Budget, here is a look at the sectors that benefited the most from the previous budgets.

Which sectors got the biggest boost?

In the last three Budgets, the defence sector emerged as the single largest area of expenditure. According to the data from PRS Legislative, actual spending for the sector in 2023-24 stood at ₹6,09,504 crore. This rose to ₹6,41,060 crore in the Revised Estimates (RE) for 2024-25 and is budgeted at ₹6,81,210 crore in 2025-26.

 

Roads and highways have also consistently ranked among the top-funded sectors. Expenditure in 2023-24 actuals was ₹2,75,986 crore. This increased marginally to ₹2,80,519 crore in the 2024-25 RE and is budgeted at ₹2,87,333 crore for 2025-26, reflecting sustained investment in this sector.

 

The railways sector continued to command a high allocation but remained largely flat over the period. Actual expenditure in 2023-24 was ₹2,45,791 crore. This edged up to ₹2,55,348 crore in the 2024-25 RE and is budgeted at ₹2,55,445 crore in 2025-26.

 

The rural development sector has also seen a steady increase over the past three years. Actual expenditure in 2023-24 was ₹1,63,642 crore, which rose to ₹1,75,878 crore in the 2024-25 RE and is budgeted to increase further to ₹1,90,406 crore in 2025-26.

 

Education spending has also picked up sharply after a dip. Actuals for 2023-24 were ₹1,23,365 crore. This declined to ₹1,14,054 crore in the 2024-25 RE, but in the FY26 Budget, it rose significantly to ₹1,28,650 crore.

 

The agriculture sector remained a high-allocation area. However, spending has fluctuated over the years. Actual expenditure was ₹1,18,147 crore in 2023-24, rising to ₹1,41,352 crore in 2024-25 RE, before easing to a budgeted ₹1,37,757 crore in 2025-26.

What do economists expect this year?

Confederation of Indian Industry (CII) expects the FY27 Budget to focus strongly on boosting investments to sustain India’s high growth momentum. Key expectations include higher government spending on infrastructure, with a proposed rise in central capital expenditure and more financial support to states, along with the launch of a new National Infrastructure Pipeline.

 

CII has also called for tax incentives and compliance relief for companies that make fresh investments, expand production or increase tax contributions, especially in high-growth sectors such as clean energy, electronics, semiconductors and logistics. To support manufacturing, the industry body sought accelerated depreciation benefits to encourage technology upgrades.