States expected to boost capex amid economic slowdown
pre-market1 source ↓written by the desknot a recommendation
- in the second
- 3.4% of GDP
- a year ago
- 3.2%
- capex remain
- 1.8% of GDP
- budget estimate
- 3.1%
Indian states are set to increase capital expenditure to 3.4% of GDP in the second half of FY26, up from 3.2% a year ago. This rise is supported by higher tax devolution and interest-free loans from the union government, aimed at bolstering investment demand amid economic slowdown signs.
The first half of FY26 saw capex remain at 1.8% of GDP, below the full-year budget estimate of 3.1%. This strategic spending shift is crucial for sustaining economic momentum.
Not investment advice. For informational purposes only.