Capex Spending In India

India has proposed to relax conditions on a tax holiday for Indian data center services, further advancing the country's strategy to make itself an attractive location

The state-wise picture also reveals a sharp churn at the top and bottom relative to the last financial year

Private sector capex intentions decline 16.5 per cent to Rs 9.55 trillion in FY27, reflecting a cautious investment outlook despite modest rise in per-enterprise spending

In a post-Budget webinar, PM Modi said the government has sharply increased capital expenditure over the past decade, focusing on infrastructure growth and the creation of new opportunities

After years of rapid expansion, the Centre's capital spending growth eases as private investment shows early signs of revival

The key focus of the government's Rs 12.2 lakh crore capex for the next fiscal will be mainly on sectors like shipbuilding, national highways, railways, and metro train projects, Expenditure Secretary V Vualnam said. The government has budgeted total expenditure in 2026-27 at over Rs 53.47 lakh crore, of which about Rs 12.22 lakh crore is projected to be the capital expenditure, meaning it would be spent on building physical infrastructure. In a post-Budget interview to PTI, Vualnam said the sectors, which have huge ongoing and new projects, like the national highways, railways, and the urban sector, to the extent of metro train projects, will continue to dominate the government public capex spending in the next fiscal. "Shipbuilding has become an infrastructure sector, and will also now be a big player. We are very keen to improve our share in shipbuilding (globally). Of India's import-export cargo, just about 5 per cent goes on India-owned ships. About Rs 6 lakh crore (annually) i

Aditi Nayar analyses the Budget's fiscal prudence, higher public capex via states, a 4.3 per cent deficit target, debt consolidation, and the impact of higher gross borrowings on bond yields

Finance Minister Nirmala Sitharaman on Sunday said the target for capex will be raised to Rs 12.2 lakh crore for FY27 from Rs 11.2 lakh crore earmarked for the current fiscal year and announced a slew of measures to boost infrastructure in the country. Presenting the Union Budget for 2026-27 in the Lok Sabha, she said the government will continue to develop infrastructure in Tier-2 and Tier-3 cities. The government also proposes to set up risk guarantee fund for infrastructure sector, she added. A scheme for enhancement for construction and infrastructure equipment will be introduced to strengthen domestic manufacturing, Sitharaman said. The government also proposes to support professional institutions like ICAI, ICSI to design short-term modular courses, she added.

Citi said that it prefers execution leaders exposed to key thematics, with Cummins India and Bharat Electronics as its top picks

NSO data shows broad-based demand recovery with rural growth, higher wages, and strong public capex

A significant drag comes from the private banking sector, which is expected to report its second consecutive quarter of declining earnings since March 2020

A Bank of Baroda study finds over five states will account for nearly 50% of ₹10.2 trillion in state capital outlay for FY26, with GST remaining the largest tax revenue contributor

India Inc capex: While Reliance Industries saw a flattish capex growth in FY25, it cornered the biggest share in the capex pie in absolute terms

The pace of capital expenditure in the first half of the current financial year had suffered on account of elections and the model code of conduct

Private sector capital expenditure is unlikely to pick up in a sustained way despite India Inc's profitability being near decadal high, domestic ratings agency Crisil said on Thursday. The profitability of India Inc is set to increase for the third year in a row in FY26 on the back of soft commodity prices, the agency said. An analysis of 800 companies excluding ones in the banking and finance and oil and gas sectors revealed that the pre-tax profit margins are set to widen to up to 20 per cent in FY26. It can be noted that the government is leading the investments in the economy for the last few years, and there have been calls for a revival in the corporate capex as well. However, rather than investing to create new capacities, India Inc has deployed money to retire debt and other measures rather than investing it even though the capacity utilisation levels are high. "Their (corporates') ability to invest is not matched by the willingness to invest at this juncture," the agency'

Our Editorial comment and columnists dissect the Union Budget 2025 to see what makes it tick, and what doesn't

By providing an effective tax cut of Rs 1 trillion to the middle class, the FM will improve consumer confidence and boost consumption

As Finance Minister Sitharaman has mentioned that the revenue foregone would be Rs 1 trillion, one can assume that it would lead to Rs 70,000 crore of consumption

Economic Survey 2025: Government capex on key infrastructure has grown by 38.8% over the past five years

The petroleum sector contributed Rs 4.32 trillion to the Central exchequer by way of taxes, royalties, and dividends, among others, and Rs 3.19 trillion to the states in 2023-24