Capital Expenditure

Central capex covers roads, railways, defence procurement, ports, and urban infrastructure. Growth was gradual 2004–2019; the sharp ramp-up from FY2021 used capex as a post-COVID demand stimulus. Capex as % of GDP rose from ~1.6% (FY2005) to ~3.4% (FY2025). Note FY2015 dipped slightly (fiscal consolidation). States' capex (partly funded by central grants for capex, or SFCE) adds another ~4–5 L Cr. High public capex has not yet fully crowded in private investment — corporate capex recovery remains moderate.