- Finance Minister Nirmala Sitharaman announced a Rs 5,000 crore per City Economic Region plan.
- The plan targets Tier II, Tier III cities and temple towns for self-sustaining growth hubs.
- Seven new High-Speed Rail Corridors will connect metro cities with satellite and regional hubs.
In a move to decentralise economic growth away from metro cities, Finance Minister Nirmala Sitharaman, in her Budget 2026 speech, has announced a transformative Rs 5,000 crore per City Economic Region (CER) plan. This plan aims to target Tier II, Tier III cities and temple towns, with the objective of turning them into self-sustaining growth hubs.
A key part of this plan will be the introduction of new seven High-Speed Rail Corridors, which are expected to serve as growth connectors designed to de-congest the metro and provide rapid transit to satellite cities and regional hubs.
The move is also expected to seamlessly connect cities and regional hubs, thus boosting tourism - a key revenue driver for temple towns across the nation.
"We shall now focus on Tier II, Tier III cities and even temple towns, which need modern infrastructure and basic amenities. This budget aims to further amplify the potential of cities to deliver economic power by mapping city economic regions based on their specific growth drivers," Sitharaman said in her Budget speech.
"Focus now on Tier 2, Tier 3 cities, even temple towns" : Finance Minister Nirmala Sitharaman presents Union Budget#BudgetWithNDTV #UnionBudget2026 #Budget2026 pic.twitter.com/xiXsh53kaf
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An allocation of Rs 5,000 per CER over five years is proposed for implementing their plans with a reform-cum-result based financing mechanism," she added.
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