India has historically protected domestic industry and, under the guise of safeguarding MSMEs, the policy framework has often ended up shielding large industrialists—many of whom struggle to compete in a truly free market. As a result, tariffs have remained high, frequently without any sunset clause. President Donald Trump’s actions have forced the Government’s hand in reducing tariffs, compelling it to re-examine its foreign trade policy and accelerate the stitching together of trade agreements. The recent Free Trade Agreements with the UK, EFTA, Oman, New Zealand, the UAE, the European Union and, finally, the USA provide India with a strategic advantage over several competing nations and represent a real opportunity to produce for the world. In the case of the USA, India enjoys a clear advantage over China: while Chinese exports face tariffs of 37 per cent, India’s tariff stands at 18 per cent. Reduced tariffs under the EU agreement will improve access to advanced machinery for India’s manufacturing sector, while electronics, engineering, pharmaceuticals and chemicals are poised to gain from deeper market access. Auto components and passenger vehicle manufacturers, however, will face pressure as margins come under strain. India must now evolve towards a strategy of manufacture domestically, export for growth. This transition is already visible in the construction equipment sector, where OEMs such as JCB, Schwing Stetter and Volvo manufacture in India and export to global markets. The Union Budget has provided a token allocation of Rs.200 crore for an Infrastructure Equipment scheme aimed at strengthening domestic manufacturing of high-value, technologically advanced advanced equipment. However, the scheme clubs together elevators for multi-storey apartments and firefighting equipment—neither of which requires such support—with genuinely strategic machinery such as tunnel-boring machines for metro networks and road tunnels. The Finance Ministry needs to recognise the distinct requirements and economic impact of a $10-billion construction equipment industry and revisit this approach. A dedicated PLI scheme for construction equipment is clearly warranted, particularly when the auto sector has been allocated Rs.5,940 crore. Road construction as of 31 December 2025 stands at 4,938 km. While road awards have been pathetically low, the Border Roads Organisation (BRO) has provided a silver lining. Under its perspective plan, 470 roads covering approximately 27,300 km are planned in border areas. In parallel, the Ministry of Road Transport & Highways has identified a PPP project pipeline of 13,400 km, with an estimated cost of `8.3 trillion, to be developed over the next three years. BOT projects are making a cautious comeback, with tweaks designed to test investor appetite. In Budget FY 2026–27, border infrastructure has received a capital outlay of Rs.7,394 crore, up from Rs.7,146.5 crore in the previous year. The allocation for Road Transport and Highways has risen by a modest 7.9 per cent over revised estimates to Rs.3.10 trillion, of which `1.87 trillion has been infused into NHAI. Railways has received a 10.1 per cent increase, taking its allocation to Rs.2.81 trillion. The Ministry of Housing and Urban Affairs has seen a sharp 49.5 per cent increase over revised estimates, with an allocation of Rs.85,522 crore. The budget for the North-Eastern Region has been raised by 22.1 per cent to Rs.1,08,335 crore. Cement consumption to the extent of nearly 10 per cent is driven by PMAY. PMAY-Rural has received a 69 per cent increase to Rs.54,917 crore, while PMAY-Urban has seen a 179 per cent jump to Rs.22,025 crore. Although the Jal Jeevan Mission underspent last year’s provision by Rs.50,000 crore, the Jal Shakti Ministry has been allocated an additional Rs.53,371 crore over revised estimates, taking the total provision to Rs.94,808 crore. With over Rs.1 trillion locked up in disputes, NHAI has now effectively excluded arbitration as a dispute-resolution mechanism for claims exceeding Rs.10 crore. The new circular recommends conciliation followed by civil court adjudication for disputes above this threshold. Justice delayed is justice denied. Whatever the mechanism, justice must be delivered swiftly. The Economic Survey indicates that the economy has the potential to achieve 7.2 per cent growth in FY2027. With multiple FTAs now sealed, India appears well-positioned to surpass its targeted growth figures. Mumbai has been given the green light to grow vertically, and the Rs.1.5 trillion real estate market has been steadily inching upward—both in terms of projects and prices. But what about its infrastructure? Can the city cope? Chief Minister Devendra Fadnavis and his able officers have engineered a plan to build infrastructure beneath the city. A network of 50 km is already underway, with another 70 km planned to create additional capacity for urban transportation. Last month, the Tunnelling Association of India (TAI) honoured Dr Sanjay Mukherjee, IAS, Metropolitan Commissioner, MMRDA with the award for Outstanding Contributions to National Infrastructure and Tunnelling Excellence. Speaking about Davos, Dr Mukherjee highlighted Maharashtra’s haul of 19 MoUs with a total investment commitment of Rs.14.5 trillion. MMRDA alone signed MoUs worth approximately Rs.11 trillion with global firms, including Brookfield and Sumitomo. In addition, agreements were signed with leading global institutions such as the University of California, Berkeley; MIT; Munich; and several others to enable cooperation in knowledge sharing, technology adoption, and process implementation. While Dr Mukherjee shared insights into his project management approach, the editorial team of Construction World was offered a rare glimpse nearly 30 metres below ground—inside a tunnel boring machine inching its way from Orange Gate to connect with the Coastal Road at Marine Drive. Follow me on Linkedin twitter @PratapPadode