India Increases Capital Expenditure Amid Economic Challenges
India's government is prioritising capital expenditure (capex) to support economic growth amid external challenges, including high energy prices and global trade uncertainty. The Union finance ministry has urged departments to meet annual capex targets, with a budgeted capex of ₹12.2 trillion for FY27. In the first half of the fiscal year, capex rose 12.7% to ₹6.55 trillion, but spending dipped in August and September. To accelerate spending, the Centre has allocated ₹2.18 trillion to states recently, including ₹1.09 trillion released on 31 October. Additionally, capital expenditure by central public sector enterprises has reached 51% of the FY27 target of ₹8.43 trillion. The government's focus on infrastructure investment aims to generate jobs and stimulate private investment, with every rupee spent yielding ₹2.5 to ₹3.5 in economic returns over the medium term.
Published 1 day ago • 06 Nov 2026, 10:32 PM IST