States expected to boost capex amid economic slowdown
after close1 source ↓written by the desknot a recommendation
- in 2HFY26
- 3.4% of GDP
- YoY
- 3.2%
- saw capex
- 1.8% of GDP
- budget estimate
- 3.1%
Indian states are set to increase capital expenditure to 3.4% of GDP in 2HFY26, up from 3.2% YoY, as per India Ratings. This rise is supported by higher tax devolution and interest-free loans from the union government. The first half of FY26 saw capex at 1.8% of GDP, below the 3.1% budget estimate.
This acceleration in spending aims to bolster investment demand, countering signs of an economic slowdown. 📈
Not investment advice. For informational purposes only.