Budget capex boost will facilitate investments in infra, EV, agri-tech

Balanced distribution of expenditure in Budget has created positive sentiment in industry.

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I has been a bold call for the Modi government to target the headline figure of Rs 10 lakh crore as capital expenditure for FY24, a move strongly endorsed by India Inc and articulated by Chandrajit Banerjee, Director General, CII as signalling a growth centric Budget, building further on the strategy of high capex” which is strategic to laying a strong foundation for Viksit Bharat by 2047”. Though the developments are a tad too early for a detailed plan for moolah push by companies, the balanced and progressive distribution of expenditure in the 2023 Budget has created a positive sentiment among industry stalwarts about driving in growth through investments, against a backdrop of sustained capex boost by Government. Central government capex grew by 63.4% in AprilNov’22,” points out Aditi Nayar, Chief Economist ICRA. Capex spending is budgeted to rise steeply for the third year in a row,” says Banerjee. Capex spending in FY24 as compared to budgeted print of Rs 7.5 lakh crore in FY23, implies over 33% rise in FY24 Budget estimates over FY23 BE. This is in line with CII recommendations,” he adds. The historic outlay for public capex”, according to Subhrakant Panda, President, FICCI, will have a multiplier effect across myriad sectors of the economy besides crowding in private investment. Among the big ticket items in capex agenda that can encourage inflows from the private sector are 100 critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertilizer, and food grains sectors with investment of Rs 750 bn, including Rs 150 billion from private sources. The other potential area are 50 additional airports, heliports, water aerodromes and advance landing grounds which will be revived for improving regional air connectivity and allocati