Budget 2024: Capex outlay raised by 11.1% to US$ 133.9 billion (Rs. 11.11 trillion)

In a strategic move to stimulate economic growth, the Central government has increased its capital expenditure (capex) allocation for the fiscal year starting April 1, 2024, to US$ 133.9 billion (Rs. 11.11 trillion), focusing on advancing India's infrastructure. The FY25 interim budget allocates US$ 133.9 billion (Rs. 11.11 trillion) for capex, constituting 3.4% of the GDP and marking an 11.1% increase from the previous year. The upward trajectory of capex, with a 37% growth in the current fiscal year, supports ongoing infrastructure development and aligns with Vision 2047 goals for India's development into a US$ 5 trillion economy. The budget emphasizes roadways, shipping, and railways development, anticipating private sector investment and addressing employment and consumption in rural India. Despite recent gains in private investment, government capital spending continues to rise, addressing potential economic challenges, including a forecasted global slowdown in 2024.

India's ambitious plan involves investing US$ 1.723 trillion (Rs. 143 trillion) in infrastructure from FY24 to FY30, focusing on roads, power, and emerging sectors like electric vehicles and renewable energy. The budget sustains accelerated infrastructure growth in 2023, proposing extensive highway construction projects in FY25.

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