Private capex remains tepid for lack of wage growth that could boost demand

Overall, government capex averaged 4.1 per cent of gross domestic product (GDP) over FY22-25, up from 2.8 per cent in the pre-pandemic days

Economists for decades have constantly lamented that we are having too much revenue expenditure and not enough capital expenditure (capex). That complaint, at least, can be retired. In the past 11 years the Modi government has spent close to ₹54 trillion as capex, about ₹38 trillion after the pandemic. For three consecutive years, public investment has exceeded ₹11 trillion annually, poured into roads, railways, defence, water, and other forms of infrastructure. In FY25, the capital outlay accounted for 23 per cent of government spending — the highest in two decades. 

Surely this would have got us