India is considering an 8-10 per cent increase in its FY25 capital expenditure from the previously allocated Rs 11.11 lakh crore. This potential rise is attributed to higher-than-expected tax revenue and a record surplus transfer by the Reserve Bank of India (RBI), according to a recent report by the Pantomath Group, a homegrown financial conglomerate.

"The capex cycle has more room to run, therefore the current expansion closely resembles that of 2003-07," stated Morgan Stanley. The analysis indicated that the current cycle is propelled by investment outpacing consumption, with public capex leading initially but private capex rapidly catching up.

According to data released by the Ministry of Coal, the CAPEX target for the fiscal year 2023-24 was set at 21,030 Crore. However, by February 2024, coal PSUs had already exceeded this target, recording a record CAPEX of Rs. 22,448.24 Crore, equivalent to 106.74% of the annual target. This remarkable feat underscores the efficiency and robustness of India's coal sector.

The remarkable performance of Coal CPSEs (Central Public Sector Enterprises) in surpassing CAPEX targets has been consistent in recent years. In the previous fiscal years of 2021-22 and 2022-23, entities such as Coal India Limited (CIL) and NLC India Limited (NLCIL) surpassed their respective targets by wide margins, achieving 104.88% and 123.33% in FY 21-22 and around 113% in FY 2022-23.

According to data released by the Ministry, Indian Railways has showcased its dedication to improving infrastructure and ensuring passenger safety by allocating a significant amount of Rs. 1,95,929.97 Crores. This represents around 75 per cent of the total Capex budget of Rs. 2.62 lakh crores set aside for the current fiscal year.