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The government is confident of meeting its capital expenditure target for FY27, supported by diversification across sectors and higher infrastructure loans to states, Anuradha Thakur tells Moneycontrol
We even want global businesses to come to India, says Sitharaman
The fiscal deficit target for FY27 is just 10 percentage points lower than the aim for the current financial year.
To discipline excessive speculation by retail investors, the finance minister could have chosen a non-fiscal path
The hike in capital expenditure has been in line with market expectations, and it would continue to maintain the investment momentum seen over the past several years
With few signs of animal spirits reviving in private sector capex, the Budget spelt out innovative financing measures and new areas of growth to sustain momentum
Finance minister Nirmala Sitharaman raised capital expenditure to Rs 12.2 lakh crore in FY27, up from Rs 11.2 lakh crore in the previous year
Capital expenditure raised to ₹12.2 lakh crore from ₹11.11 lakh crore last year as government doubles down on infrastructure and manufacturing
India’s debt to GDP ratio was below 50 percent in FY19, but rose to 51.9 percent in FY20 and further to 62 percent during the pandemic
It wants Indian companies to take bigger risks, make investments with longer time horizons, become globally competitive, and avoid rent-seeking, oligopolistic tendencies
A central argument in the survey is that India’s cost of capital remains structurally high, limiting the appetite for long-gestation private projects.
The survey contrasts capital spending with transfer-heavy expenditure, warning that the latter offers only transient welfare gains, while capex delivers durable improvements in productivity, incomes and competitiveness
On capital expenditure, 15 respondents said their companies would significantly increase spending over the next 12 months, while another 18 executives indicated a slight increase
Capital expenditure seen holding near 3% of GDP even as total Budget size crosses Rs 53 lakh crore
During the third quarter of the current fiscal, the company incurred an under recovery of Rs 503 crores on LPG sales. In January, the under recoveries stood at Rs 95 per cylinder. The company now expects this to increase to Rs 120 per cylinder going ahead.
Polycab's strong rebound in FMEG business and outperformance in W&C continue
Public capital expenditure should gradually be brought closer to 3 percent so that more financial resources are available for the private sector, economists said. In the FY26 Budget, the government budgeted around Rs 11.21 lakh crore for capital expenditure, higher than 3 per cent of GDP.
According to internal data, seen by Moneycontrol, Uttar Pradesh has received the maximum amount of Rs 8,465 crore under the scheme till December 15. Assam has received Rs 5,597 crore and Maharashtra has received Rs 4,584 crore.
Order visibility and margin stability support sustained earnings growth
The growth outlook for 2026 for public and private capex appears to be more balanced, say economists. Private capex would be supported by continuing low levels of global crude prices, likely easing of global supply situations, and India’s FTA push.
Supplementary allocation lifts planned capital outlay to Rs 1.71 lakh crore, taking capex intensity to among the highest in India
The Committee on Public Undertakings noted that project cycles of oil and gas sector projects, ageing fields and past disruptions have contributed to stagnant or declining domestic production despite high capital expenditure.
Given the belief that capex growth will continue to disappoint, we are negative on anything linked to capex- steel, cement and the industrial sector, says Shah
Moderating state capex growth can mean that industrial players' earnings can soften as order inflows slow, project execution gets delayed and margin recovery becomes uneven.
As ROCE and ROA improve, the next cue to capex revival would come from sustained demand expansion
