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Date: 27/01/2025

Govt’s infra investments seen driving growth in FY 26
 
The Union government’s efforts towards infrastructure development and investments in critical sectors such as railways, defence, power and data centres are expected to drive growth momentum into FY 2026 and beyond, says a report by financial services firm Prabhudas Lilladher (PL). The foundations for a gradual economic recovery appear to be taking shape due to the government stepping up efforts to accelerate capital expenditure (capex) spending. The total capital spending by the Centre was budgeted at Rs 11.1 trillion for FY25. The early signs of increased order activity in these areas highlight the potential for accelerated execution, which could act as a catalyst for broader economic revival. It added that the upcoming Budget will be instrumental in shaping this recovery, with expectations of a growth-driven focus aimed at boosting middle-class spending and balancing fiscal discipline, as per a report.
 
Source: Exim News Service: Mumbai, Jan. 26



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