Union Budget 2025-26: Charting a new growth path amid capex decline
The private sector has pulled back spending on new factories and other long-term assets, while government infrastructure projects, such as new roads, have also slowed
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Illustration: Ajay Mohanty
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Challenges
> Value of new projects announced declined in the December 2024 quarter, reversing the promising growth in the September quarter
> The private sector has pulled back spending on new factories and other long-term assets, while government infrastructure projects, such as new roads, have also slowed
Takeaways
> Amid fiscal consolidation measures, capex has been revised downwards to Rs 10.18 trn from Rs 11.11 trn in FY25. It is projected to increase to Rs 11.21 trn in FY26
> Restrained capex also highlights absorptive capacity of the system
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Topics : Budget 2025 Capex private sector Govt spending
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First Published: Feb 02 2025 | 12:14 AM IST