Centre to meet FY25 capex estimates despite slow start

Strong spending in the second half of the fiscal underscores the focus on infra-led growth

- Rhik Kundu & Subhash Narayan

The central government's capital expenditure (capex) for fiscal year 2025 (FY25) is poised to meet—and even modestly exceed—the revised target of ₹10.2 trillion, supported by an accelerated deployment of funds in the latter half of the fiscal year, two people familiar with the matter told Mint.

The strong momentum in second-half spending underscores the government's sustained focus on infrastructure-led growth, even as it navigates fiscal consolidation pressures.

While the final figures are still being tallied, the capex could be between ₹10.2 trillion and ₹10.4 trillion for FY25, exceeding revised projections, said the first person mentioned above, requesting anonymity.

"Capital expenditure (by both Centre and states) witnessed a temporary slowdown in the first half of the fiscal year, largely due to the electoral calendar. However, spending has gained significant traction over the last two quarters," the person mentioned above said.