Capital expenditure (Capex) in FY25 has faced a sluggish start, primarily due to the disruptions caused by the national elections. The electoral process has temporarily hindered the government’s ability to execute major infrastructure projects and investments, leading to a slow pace in Capex deployment in the first half of the fiscal year.
Recovery Expected in H2FY25
Despite the slow start, experts remain optimistic about a rebound in capital expenditure during the second half of FY25 (H2FY25). With elections behind, the government is expected to regain momentum in its infrastructure investments, which are critical for economic growth and development.
40-52% Increase Needed to Meet FY25 Targets
To meet the ambitious Capex targets set for FY25, a significant recovery is required. Projections suggest that a 40-52% push in the second half of the year is necessary for the government to reach its fiscal targets. This increase will rely heavily on the swift execution of delayed projects and the fast-tracking of upcoming investments.
Focus on Fast-tracking Projects
As FY25 progresses, the focus will shift to accelerating the pace of capital expenditure in H2FY25. Meeting the target will require strategic planning, efficient project management, and overcoming the setbacks experienced earlier in the year.
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