India is entering a decisive phase of infrastructure growth. With rapid urban expansion, smart city projects, commercial real estate growth, and industrial corridors reshaping our cities, the Union Budget 2026-27 is expected to do more than allocate funds. It must create a structural shift in how buildings and public infrastructure are maintained.
While construction receives significant policy attention, facility management often remains in the background. However, without professional facility management, even the most advanced infrastructure deteriorates quickly. For Integrated Facility Management companies like Nanya, the budget presents an opportunity to redefine how India maintains its built environment.
Why Facility Management Matters More Than Ever?
India currently has over 65 million square feet of Grade A commercial real estate across major cities. Metro networks are expanding across more than 20 cities. Airports, hospitals, data centers, IT parks, educational institutions, and residential townships are growing at record speed.
But infrastructure creation is only half the story.
Studies in the sector show that nearly 60 percent of a building lifecycle cost occurs after construction. This includes maintenance, energy management, cleaning, security, asset management, and sustainability compliance. Without policy focus, these long term costs increase due to inefficiency and reactive maintenance practices.
Facility management directly impacts:
• Energy efficiency
• Water conservation
• Workplace safety
• Asset life extension
• ESG compliance
• Operational cost optimization
Budget 2026 27 must recognize facility management as a strategic industry, not just a support service.
Current Challenges Facing Facility Management in India
Despite its growing importance, the sector faces structural gaps:
1. Lack of Policy Recognition
Facility management is rarely categorized as a priority industry. There are limited incentives for technology adoption, skill development, or sustainability innovation within the sector.
2. Skill Gap
India has millions of workers engaged in cleaning, maintenance, and security. However, formal training and certification levels remain inconsistent. A policy push toward structured skill development could elevate service quality nationwide.
3. Technology Adoption Barriers
Smart buildings rely on IoT systems, AI based monitoring, predictive maintenance, and digital asset management. Smaller companies often struggle with upfront investment costs. Tax incentives or digital transformation subsidies could accelerate modernization.
4. Sustainability Pressures
With India committed to net zero targets by 2070, energy efficient building management becomes critical. Yet many facilities still rely on outdated systems that waste electricity and water.
Budget 2026 27 can bridge these gaps with focused measures.
Key Areas Where Budget 2026-27 Can Drive Impact
Infrastructure Maintenance Allocation
Public infrastructure budgets often prioritize new construction over maintenance. International benchmarks suggest that allocating even 2 to 3 percent of infrastructure value annually toward maintenance can significantly extend asset life.
Dedicated maintenance funds for government buildings, hospitals, transport systems, and public institutions would prevent premature deterioration.
Incentives for Green Facility Management
Energy efficient lighting, smart HVAC systems, water recycling plants, and waste management systems reduce operational costs by up to 25 percent in commercial properties.
Tax deductions for sustainability upgrades in existing buildings could accelerate green transitions. This would also align with ESG reporting requirements that large corporations now follow.
Formalization of the Workforce
The facility management sector employs millions, many from informal backgrounds. Budget incentives for certified training programs, apprenticeship schemes, and safety compliance upgrades can improve productivity and worker welfare.
Structured skill development increases service quality and enhances brand trust in commercial environments.
Digital Transformation Support
Encouraging adoption of Computer Aided Facility Management systems, predictive analytics tools, and energy monitoring platforms can reduce downtime and maintenance costs by up to 15 to 20 percent.
Policy measures could include depreciation benefits for digital infrastructure or MSME support schemes for technology investment.
Economic Contribution of Facility Management
India facility management market is estimated to grow at over 12 percent annually. As commercial real estate expands and urban populations increase, demand for integrated services continues to rise.
The sector contributes significantly through:
• Employment generation
• Support to real estate and manufacturing
• Energy savings and sustainability impact
• Improved public infrastructure reliability
Recognizing facility management as an infrastructure enabler rather than a backend cost center can reshape national productivity outcomes.
Why Integrated Facility Management is the Future?
Modern facilities demand integrated solutions. Cleaning, security, maintenance, energy management, landscaping, and technical services cannot function in isolation.
Integrated Facility Management ensures:
• Single point accountability
• Standardized service quality
• Cost optimization
• Real time performance tracking
• Sustainability alignment
Companies like Nanya Realty Pvt Ltd operate in this evolving space, delivering structured IFM solutions that combine technology, manpower, and compliance frameworks.
Budget 2026 27 can accelerate adoption of integrated models by encouraging consolidation and formalization within the sector.
The Link Between Facility Management and Urban Development
India urban population is projected to exceed 600 million by 2030. Cities are expanding vertically and horizontally. Residential complexes, IT parks, logistics hubs, and industrial clusters require continuous upkeep.
Without efficient facility management:
• Energy bills escalate
• Water resources are wasted
• Asset life shortens
• Safety risks increase
• ESG compliance becomes difficult
Policy support today can prevent large scale infrastructure inefficiencies tomorrow.
The Way Forward
Budget 2026 27 presents a strategic opportunity to:
- Recognize facility management as a growth driver
- Allocate maintenance focused funding
- Incentivize green retrofitting
- Strengthen workforce certification
- Encourage digital modernization
India has already demonstrated its ability to build world class infrastructure. The next step is to maintain it intelligently.
Facility management is not a secondary function. It is the engine that sustains infrastructure value across decades.
For IFM leaders like Nanya Realty Pvt Ltd, policy focus on this sector would not just support business growth. It would enhance national infrastructure efficiency, sustainability performance, and economic resilience.
Frequently Asked Questions(FAQs):
1. Why is facility management important in Budget 2026-27?
Facility management ensures infrastructure longevity, energy efficiency, and operational cost savings. Policy recognition can strengthen maintenance frameworks across public and private sectors.
2. How does facility management contribute to economic growth?
It generates employment, supports real estate growth, improves infrastructure performance, and reduces long term operational expenses.
3. What policy changes can benefit the facility management sector?
Tax incentives for green upgrades, funding for digital transformation, workforce certification programs, and dedicated infrastructure maintenance allocations.
4. How does integrated facility management improve efficiency?
Integrated models provide centralized accountability, standardized service delivery, and technology enabled monitoring that reduces costs and downtime.
5. How can IFM companies support sustainability goals?
By implementing energy management systems, waste reduction programs, water conservation strategies, and ESG aligned operations.
