Capex Spending In India

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

India Ratings and Research (Ind-Ra) on Monday said the FY26 Budget should focus on a mix of fiscal consolidation roadmap, while boosting consumption demand, and capex spending. The Centre in the FY22 Union Budget had provided a fiscal consolidation glide path till FY26 according to which the fiscal deficit will be brought down to 4.5 per cent of the GDP. "By adhering to the outlined targets, it builds up fiscal credibility which is important for various stakeholders especially investors in gauging the fiscal health of the economy. It also helps in curtailing inflation which has been sticky during FY24-FY25. "This is one of the reasons for weak consumption demand in the economy which has kept private investments in wait-and-watch mode. Thus, measures to stimulate consumption demand in the economy through income tax relief may be announced in the forthcoming budget," Ind-Ra said. Against the backdrop of the past three quarters of growth slowdown, Ind-Ra expects the FY26 Union Budget

Naren says investors should take a hybrid approach to navigate global uncertainties

The monthly average price for December 2023 was Rs 55,000 per tonne while for December 2024, it stood at Rs 46,900 per tonne

Economists said that the Centre's capex needs to expand by 65 per cent YoY in December 2024-March 2025 or record a monthly run rate of Rs 1.5 trillion, to meet the FY2025 target of 11.1 trillion

Top execs plan to go on hiring spree, expect govt to offer tax incentives

Major steel producers have been on an expansion spree. Ongoing capex is expected to boost capacity by 30 mn tonne per annum (mtpa) by fiscal 2027, of which 20 mtpa is to be added by the end of fiscal