The Finance Minister of India has reiterated the government’s unwavering commitment to increasing capital expenditure as a primary driver to sustain and accelerate economic growth. In her recent speeches and budget outlines, she emphasized capital spending as central to India's infrastructure development and job creation efforts.
Key Highlights On Capital Spending
The government has allocated a record ₹11.21 lakh crore for capital expenditure in FY 2025-26, which marks a 10.2% increase over the previous year’s revised estimates.
Focus areas include road transport, metro rail networks, renewable energy projects, and social infrastructure, all aimed at strengthening economic foundations.
Capital investments are viewed as a vital catalyst for attracting private sector participation and boosting consumption and investment cycles.
The Finance Minister underscored that this robust capex will underpin India’s vision of 'Viksit Bharat' and its ambition to become a developed economy by 2047.
Strategic Economic Vision
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Despite global uncertainties, the government plans to keep fiscal deficit around 4.4% while prioritizing growth through infrastructure-led spending.
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Reforms accompany spending increases to improve ease of doing business, promote innovation, and sustain economic momentum.
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This dedicated capital expenditure push signals India’s focus on long-term development and inclusive growth.
Sources: PIB, Times of India, Economic Times, India Government Website October 2025