In the Union Budget for the fiscal year 2025-26, Finance Minister Nirmala Sitharaman announced a record capital expenditure (capex) target of ₹11.21 lakh crore, marking a 10.08% increase from the previous year. This strategic move aims to stimulate economic demand, create jobs, and lay the foundation for long-term growth. 

Key Highlights:

Strategic Allocation: The government is focusing on sectors like Railways, Road Transport & Highways, Ports, and Shipbuilding, which have been major drivers of capex. 

Expansion Plans: Discussions are underway to explore new avenues for capex, including urban infrastructure and sunrise industries, to further boost economic activity.

Early Momentum: The first quarter of FY26 has already seen 25% of the budgeted capex spent, indicating a strong start to the fiscal year. 

Impact on the Indian Market:

Infrastructure Growth: Increased investment in infrastructure will lead to improved connectivity and efficiency, benefiting various sectors.

Job Creation: The capex push is expected to generate employment opportunities, particularly in construction and manufacturing.

Private Sector Confidence: The government's commitment to infrastructure development may encourage private sector investment through public-private partnerships.

 In conclusion, the government's enhanced capex plan for FY26 is a proactive approach to revitalize the economy, with far-reaching benefits for various sectors and the overall market.

By Nehal Taparia 

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