In the visionary guidance of Prime Minister Narendra Modi, the government of India has achieved considerable progress in developing the country's infrastructure and giving a boost to farmers in the last decade or so, as per the recent industry reports.
Latest data that was posted by Infoindata on its X social media handle indicates that the Capital Expenditure (Capex) of the nation is likely to hit Rs 65.82 lakh crore by FY26.
“Total Capex in PM Modi’s tenure stands at Rs 65.82 lakh crore till FY-26, more than a 5x increase of what it was in the UPA era (2004-14). This massive infrastructural overhaul has been synced with farmers’ welfare, which is evident from consistently increasing MSP support also,” Infoindata mentioned, citing sources like the RBI and the Ministry of Agriculture and Farmers’ Welfare.
Under the UPA regime (2004-2014), Capex was Rs 12.39 lakh crore, a whopping 431% increase in the past decade.
The government has also raised its spending on the Minimum Support Price (MSP) considerably, again reflecting its focus on farmer welfare.
The MSP was Rs 7.04 lakh crore under the UPA regime (2004-2014) and has risen to Rs 23.12 lakh crore under PM Modi's regime (2014-2024). This indicates a stunning 228% increase in MSP expenditure under the present government.
The government has also allocated a cumulative amount of Rs 43.53 lakh crore in Gross Budgetary Support (GBS) capital spending since 2014, which is a 3.72 times rise from the 2004-14 years.
Recently, the Centre has put maximum importance on Capex, with extra focus on promoting consumption as well.
To give this strategy more muscle, more capital has been pumped into Food Corporation of India (FCI), which pays farmers for the produce at MSP prices.
Despite global economic challenges and uncertainties, India is set to remain the fastest-growing major economy in 2025-26, with the IMF and World Bank projecting GDP growth rates of 6.5% and 6.7%, respectively, according to the RBI’s monthly bulletin last month.
The 2025-26 Union Budget wisely walks the tightrope between fiscal prudence and growth goals, maintaining the emphasis on Capex while undertaking steps to increase household incomes as well as consumption. The actual capital expenditure-GDP ratio is predicted to go up to 4.3% during 2025-26 from 4.1% in the revised estimate for 2024-25.
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