Public Capex May Hit Decade High as Pvt Investments Lag

India's GDP growth accelerated sharply to 7.4% in the final January-March quarter of FY25

- Rhik Kundu

Capital spending by large central public sector enterprises (CPSEs) and key infrastructure agencies could exceed ₹8.5 trillion in FY26, the highest in a decade, following a renewed push from the government to accelerate investments this fiscal year, two people familiar with the matter told Mint.

The government aims to sustain economic momentum through strong public investment in infrastructure, at a time when private sector capital expenditure remains tentative and uneven, they said.

Capital expenditure by CPSEs has risen sharply over the past decade, from ₹1.88 trillion in FY14 to ₹3.28 trillion in FY25, marking a 73.6% jump, according to data from the department of public enterprises, under the Union finance ministry.

"CPSEs have been nudged to maintain the momentum in FY26," said the first of the two persons mentioned earlier, both of whom spoke on the condition of anonymity.