India will spend a record $133 billion on infrastructure, the finance minister unveiled on Jan. 1 in her national budget speech, with plans for new high-speed train links and tech investments.
The figure is an almost 9 percent jump from last year's budget.
Data centers, artificial intelligence, and the mining and processing of rare earths will also receive government support, Finance Minister Nirmala Sitharaman told parliament.
She said public expenditure had increased significantly from around $21 billion (2 trillion rupees) in 2014-15 and that it was now at an "all-time high."
The world's most populous country sees massive infrastructure spending as key to sustaining its high growth rate by boosting domestic manufacturing and creating millions of new jobs.
Sectors including textiles, pharmaceuticals, electronics and chemicals are primary targets to boost exports, Sitharaman said.
She promised the development of three chemical business parks, as well as mega textile hubs.
Around $5 billion will also be allocated to boost domestic electronics manufacturing, she said.
It is the first budget since U.S. President Donald Trump imposed 50 percent tariffs on most Indian imports in August.
New Delhi and Washington are in the process of negotiating a long-delayed trade agreement.
But relations have soured over India's purchases of Russian oil, which Washington says is helping bankroll Moscow's war in Ukraine.
New Delhi signed a major trade deal with the European Union last month, with many crediting Trump's tariffs for helping finalise the deal.