CapEx Boost Holds Key to Infra Development in 2025

The significant decline in India's public and private sector Capital Expenditures (CapEx) in 2024 has necessitated a considerable increase in the CapEx in 2025 to give the necessary impetus to infrastructure development.
Vinod Behl

Looking at the CareEdge report, it is a matter of concern that in the first half of FY25, the central CapEx declined by 15.4% and state CapEx shrank by 10.5%. The Centre achieved only 37% of its budgeted CapEx target during April-September 2024 while 20 states collectively achieved only 28% of the target. As such, the Centre has an uphill task of incurring CapEx of INR 1.3 lakh crore per month during November 2024 - March 2025 to meet the FY25 budget target of 11.11 lakh crore. Aditi Nayar, Chief Economist, ICRA, believes that the target is likely to be missed by 1 lakh crore in the current fiscal.