Finance Minister Nirmala Sitharaman announced that India’s capital expenditure (capex) outlay for the fiscal year 2025 will remain at Rs 11.11 lakh crore, same as the allocation made in February. This represents a significant increase from the previous year’s revised estimate of Rs 9.5 lakh crore.
The government plans to allocate 3.4 percent of the Union Budget to capex, an increase from 3.2 percent the previous year, and nearly double the expenditure from five years ago.
Over the past seven years, the growth in capex has remained in double digits for six years. However, this growth is expected to decelerate from the robust 28.4 percent witnessed in FY24 and the 24.8 percent recorded in the preceding year.
