What's the ₹25,000cr infrastructure risk guarantee fund all about?
The government is considering a ₹25,000 crore fund in the upcoming Budget 2025-26 to make it less risky for banks to lend money to big infrastructure projects.
This proposed move—recommended by a committee under NaBFID and likely to be managed by the National Credit Guarantee Trustee Company—would give banks some peace of mind if things go sideways during development.
Why should you care?
India needs massive infrastructure upgrades to hit its $7 trillion economy target by 2030, but delays and funding issues keep getting in the way.
This new fund is meant to get private players more involved, help banks lend more confidently, and attract big investors.
With over 500 highway projects already running late due to land and clearance problems, this boost could be a game-changer for India's future growth.