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Green infra eyed as Centre aims to broaden FY27 capex

Mint Hyderabad

|

July 30, 2025

For FY27, the govt is likely to maintain its public capex at about 3.1% of GDP, similar to FY26

- Rhik Kundu & Subhash Narayan

The Union government is considering expanding the scope of its capital expenditure (capex) in fiscal year 2027 (FY27) beyond traditional infrastructure to include emerging, climate-friendly sectors such as renewable energy and green technologies, two people aware of the matter said. Senior finance ministry officials will meet their counterparts across key ministries in the coming weeks and months to identify investment opportunities in sectors that are both future-ready and growth-supportive.

"The government is keen to sustain the growth momentum through targeted public investment, especially as private sector capex remains uneven," the first person mentioned above said, requesting anonymity.

The person added that broadening the capex could also help align long-term development goals with sustainability imperatives.

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