Capex Surge Expected: Private and Government Investments to Rise
Key drivers include rising domestic demand, improved corporate profits, and government infrastructure projects.
The RBI Monthly Bulletin reports a significant 8.2 percent growth in capital expenditure (capex) last year, driven by both private and government investments.
This trend is projected to continue, with capex expected to increase 54 percent to ₹2.45 lakh crore in the current fiscal year.
Key drivers include rising domestic demand, improved corporate profits, and government infrastructure projects.
The anticipated capex for 2023-24 is up 41.7 percent to ₹2,80,975 crore, with greenfield projects making up 89 percent of the investment.
Investment plans for FY24 total ₹5.66 lakh crore, a rise from ₹3.51 lakh crore in FY23. Despite this, concerns persist about the concentration on infrastructure.
In the 2024 budget, Rs 11.11 lakh crore has been allocated for FY25.