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New govt to boost infra sector, but expect some hurdles
Business Standard
|June 07, 2024
The general elections inevitably led to a slowdown in government projects through Q4FY24 and Q1FY25 with muted activity.
The installation of a coalition could mean changes in policy focus which will only become apparent as and when the FY25 full year Budget is announced. The market was banking on strong rumours that the last government had put together a 100-day plan to accelerate the thrust on infrastructure spending and on defence production.
Assuming some version of that 100-day plan is rolled out, it could lead to a bounce in activity across roads and renewable power in particular. In addition, some analysts are pointing to a possible revival in private sector capex, given signs that this was on the cards in late FY24.
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