The government should increase capital expenditure (capex) by 10-12 per cent in the upcoming Union Budget 2025-26 to ensure that it maintains its focus on infrastructure development and instils confidence among stakeholders said a report by Jefferies.
In the pre-budget meeting with Finance Minister Nirmala Sitharaman on Monday, representatives from various industry bodies put forward a bouquet of suggestions before the government.
Reforms in sectors, particularly land, labour, and power, are critical for long-term growth. FICCI proposes creating inter-state institutional platforms similar to the GST Council to facilitate consensus-building and advance reforms in these areas.
India's real GDP growth is projected to remain steady at 6.5 per cent for the financial years 2025 and 2026, according to the latest EY Economy Watch report.
The central government has utilized only 37.28 per cent of the budgeted Effective Capital Expenditure (ECE) in the first half of the financial year 2024-25, according to the data released by the Ministry of Finance.
Brokerage and financial advisory services firm HDFC Securities expects India's GDP to grow at 6.4 per cent in 2024-25, with downside risks given a slowdown in urban demand and a lack of substantial revival in private capex.
It said, "Several States have announced sops pertaining to farm loan waiver, free electricity to agriculture and households, free transport, allowances to unemployed youth and monetary assistance to women in their Budget for 2024-25."
India's solar equipment manufacturing capacity is poised for healthy growth over the next 2-3 years, entailing a capex of nearly Rs 1 lakh crore, asserted CareEdge Ratings.
Minister of State (Independent Charge) of the Ministry of Statistics and Programme Implementation Rao Inderjit Singh on Wednesday shared the rationale on the Forward-Looking Survey on Private Corporate Sector Capex Investment.
Replying to the debate in Lok Sabha on the supplementary demands for grants for 2024-25, Sitharaman noted that capital expenditure is critical for sustaining economic growth and that it plays a key role in creating multiplier effects throughout the economy
India would require capital expenditure to the tune of Rs 16,000 crore by 2030, to meet its public EV charging demand and to achieve the mission of over 30 per cent electrification, as per a report by industry body FICCI.
The Department of Public Enterprises (DPE) has reported that capital expenditure (CAPEX) by Central Public Sector Enterprises (CPSEs) and other monitored organizations over the past few years has exceeded targets.