India’s Economic Engine Roars as Government Surpasses FY25 Capex Targets

India's government is to surpass its revised capital spending (capex) goal of ₹10.18 lakh crore for the fiscal year 2024-25 (FY25). The senior official confirmed the data hitherto available put the capex crossing revised estimates by a margin. It is a reflection of the government's focus on infrastructure development and economic growth.

 

The capex target was lowered from ₹11.1 lakh crore to ₹10.18 lakh crore in the Union Budget 2025-26. The government has sanctioned ₹11.21 lakh crore for capital expenditure in the next fiscal year (FY26), which means it is maintaining its level of infrastructure expenditure to the highest level possible.

 

Union Finance Minister Nirmala Sitharaman stressed that increased capital expenditure has been one of the primary factors why India has become the world's fastest-growing economy. The effective capex for FY26 is 4.3% of GDP with a fiscal deficit of 4.4%. Sectors such as railways and roads have already reached 83-87% of their FY25 target, which has contributed significantly to this achievement.

 

Also, capital project transfers to states have increased by 60%, further spurring state-level infrastructure development. Experts expect these projects to back India's estimated FY26 GDP growth of 6.5% led by public and private investment.

 

Source: IANS