Capex slows in FY25 but key infrastructure, power players set to benefit

The government is likely to miss its capex target in FY25, according to RE of Rs 8.2 trillion, lower by 8.3 per cent compared to budget estimates or BE

Post-election capital expenditure (capex) has been weak at 2 per cent year-on-year (Y-o-Y) in M9FY25.

 

The FY25 revised estimates (RE) indicate 7 per cent growth in FY25 against FY24, implying 21 per cent Y-o-Y growth in Q4FY25 government capex.

 

But much of this will be driven by equity infusions into public sector undertakings (PSUs), such as capital support of ₹69,700 crore for BSNL.

 

The government is likely to miss its capex target in FY25, which, according to the RE, is ₹8.2 trillion, lower than the budget estimates (BE) by 8.3 per cent.

 

Budget FY26 has an allocation of ₹11.2 trillion,