Union Budget 2026: How 7 regions including Bengaluru, Varanasi, and Surat will become ‘Urban Economic Regions’; Rs 35,000 crore Master Plan for development
Urban Economic Regions Budget 2026: Union Finance Minister Nirmala Sitharaman has announced a revolutionary initiative in the Union Budget 2026 to revitalize the economic power of Indian cities. The government has decided to develop seven major centers in the country, including Bengaluru, Surat, and Varanasi, as ‘City Economic Regions’ (CERs). The main objective of this scheme is to establish these cities as world-class business and innovation hubs.
Massive Financial Allocation for Seven Regions
According to the budget proposal, an allocation of Rs 5,000 crore has been provisioned for each Urban Economic Region over the next five years. Thus, a total investment of Rs 35,000 crore is proposed for all seven regions. The cities regions selected for this scheme are:
Bengaluru
Bhubaneswar-Puri-Cuttack (Tri-city region)
Surat
Varanasi
Focus on Tier-2, Tier-3 and Temple Towns
The Finance Minister clarified in her address that the role of small and medium-sized cities (Tier-2 and Tier-3) is extremely important in the development of modern India. This new initiative will specifically focus on those cities and temple towns that are in urgent need of modern infrastructure and better civic amenities. The government aims to conduct economic mapping in these cities based on the ‘Urban Growth Index’.