
India Index
February 1, 2025 at 06:25 PM
📢 Capital Expenditure (CapEx) Highlights in Budget 2025-26
The Government’s focus on infrastructure and development is reflected in the increased CapEx allocation.
📊 CapEx Allocation & Key Initiatives
📌 Total Capital Expenditure Allocation: ₹11.1 Lakh Crore
📈 Increased investment in infrastructure, highways, and urban development.
🔧 Aims to boost job creation and long-term economic growth.
📌 ₹1.5 Lakh Crore Interest-Free Loans to States for CapEx
States get funds for infra projects but must implement reforms.
Encourages states to invest in power, transport, and digital infra.
📌 Asset Monetization Plan 2025-30 (₹10 Lakh Crore)
Government will lease assets to private firms to reinvest in new projects.
Railways, highways, and airports to be monetized to fund fresh infra development.
📌 Urban Challenge Fund (₹1 Lakh Crore) for Smart Cities & Urban Development
Focus on city redevelopment, water & sanitation, and transport infra.
25% of project cost to be covered by the fund, while 50% will come from bonds, banks, and PPPs.
📌 Jal Jeevan Mission Extended Until 2028
15 crore households already connected with potable water.
Budget allocated to ensure 100% tap water coverage in rural India.
📌 Warehousing & Air Cargo Infrastructure Boost
Govt to develop high-value perishable cargo warehousing.
Improved customs processing and air cargo facilities.
📌 Public-Private Partnership (PPP) Push in Infrastructure
All infrastructure ministries must release a 3-year pipeline of PPP projects.
States can seek support from the India Infrastructure Project Development Fund (IIPDF) for project preparation.
📌 National Manufacturing Mission
A framework to support MSMEs & large industries in boosting domestic manufacturing.
Integration with supply chains & policy incentives for local production.
📊 Sector-Wise Breakdown of CapEx Impact
🚧 Roads & Highways
Significant investment in expanding highway connectivity & expressways.
Increased rural road development under PMGSY (Pradhan Mantri Gram Sadak Yojana).
🏗 Real Estate & Urban Infrastructure
₹1 Lakh Crore Urban Challenge Fund for redevelopment.
Govt will back 25% of project costs, with private sector expected to invest 50%.
Push for affordable housing and smart cities.
🔋 Energy & Power Infrastructure
Investments in power distribution and renewable energy.
Incentives for states to reform power distribution policies.
Nuclear Energy Mission & EV battery manufacturing incentives.
🚆 Railways & Metro Expansion
Railway electrification and new high-speed corridors.
Metro rail expansion in tier-2 cities.
📡 Digital & Telecom Infra
Expansion of 5G and rural broadband infrastructure.
Public-private partnerships to expand fiber optic networks.