Capital Expenditure

Government capex covers roads, railways, defence procurement, ports, telecom, and urban infrastructure. Sharp ramp-up post-COVID (FY2022–25) explicitly used as a demand stimulus tool. Capex as % of GDP rose from ~1.7% (FY2015) to ~3.4% (FY2025). States' capex (funded partly by central grants) adds another ~4–5 L Cr. Critics note high public capex has not fully crowded in private investment — corporate capex recovery remains moderate.