Budget 2026 shows slowdown in capital expenditure growth
pre-market1 source ↓written by the desknot a recommendation
- growth
- 0.9%
- in FY23
- 36%
- in 2020-21
- ₹4.12 lakh crore
- in 2025-26
- ₹11.21 lakh crore
- capex outlay
- ₹12 lakh crore
The capital expenditure (capex) allocation in India's Budget 2026 has sharply declined to just 0.9% growth, down from 36% in FY23. Despite this, total government spending on capital assets has increased from ₹4.12 lakh crore in 2020-21 to ₹11.21 lakh crore in 2025-26. Experts advocate for a ₹12 lakh crore capex outlay to sustain infrastructure-led growth.
This slowdown may impact sectors reliant on government infrastructure projects, particularly Construction and Infrastructure. Investors should monitor future budget allocations closely for potential market implications.
Not investment advice. For informational purposes only.