Focus on Tier-2, Tier-3 cities, temple towns in Union Budget 2026 - 'India's growth engines'

Nirmala Sitharaman presented her ninth Budget today.

• 7 new high-speed rail corridors, 20 national waterways to boost connectivity
• Modular courses for "Corporate Mitras" to aid SME compliance in smaller cities
• Sustainable mountain trails in Himachal, Uttarakhand and Kashmir

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Finance Minister Nirmala Sitharaman on Sunday said the government will prioritise the development of Tier-2 and Tier-3 cities, including temple towns, describing urban centres as key drivers of India’s economic growth.

Urban infra push

While presenting the Union Budget 2026–27 in Parliament of India, Sitharaman announced an allocation of Rs 5,000 crore per year for five years to strengthen urban infrastructure and improve civic amenities in these cities.

'Corporate Mitras' initiative

The finance minister also unveiled plans to introduce modular professional courses to create a new cadre of “Corporate Mitras” in smaller cities. Professional bodies such as ICAI, ICMAI and ICSI will design these courses to train accredited para-professionals who will help SMEs meet compliance requirements at affordable costs.

5 university townships

The FM also announced that five university townships would be established near major industrial and logistics corridors. Also, the Budget makes provisions for one girls' hostel per district to support female students facing challenges.

"Our government will support states through the challenge route, creating five university townships in the vicinity of major industrial and logistics corridors," the finance minister said.

High-speed rail corridors

Sitharaman further announced that seven high-speed rail corridors will be developed to boost connectivity and regional growth. The proposed routes include:

* Mumbai–Pune

* Pune–Hyderabad

* Hyderabad–Chennai

* Hyderabad-Bengaluru

* Chennai–Bengaluru

* Delhi–Varanasi

* Varanasi–Siliguri

"In order to promote environmentally sustainable passenger systems, we will develop seven high-speed rail corridors between cities as growth connectors, namely Mumbai to Pune, Pune to Hyderabad, Hyderabad to Bengaluru, Hyderabad to Chennai, and Chennai to Bengaluru. Delhi to Varanasi, Varanasi to Siliguri," the FM said.

Corridors like Varanasi–Siliguri and Pune–Hyderabad are expected to unlock economic activity in regions that have so far remained on the fringes of major transport networks.

New national waterways

Sitharaman also announced that 20 new national waterways will be operationalised over the next five years. The government will establish new freight corridors connecting Dhankuni in the East to Surat in the West, she said in her Budget speech.

The government will also operationalise the new waterways, starting with NW-5 in Odisha to connect mineral-rich areas and industrial areas to ports like Paradip and Damra.

Mountain trails in Uttarakhand, Himachal

The Budget also highlighted eco-tourism and nature-based travel. The Finance Minister said, "India has the potential and opportunity to offer world-class trekking and hiking experience."

The government will develop sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir, as well as in Araku Valley in the Eastern Ghats and Pudigai Malai in the Western Ghats. In addition, special trails will be created for wildlife tourism. These include turtle trails along nesting sites in Odisha, Karnataka and Kerala, and bird-watching trails around Pulicat Lake.