Of the 1.32 trillion capex target for FY26, State-run oil firms have already spent 1.07 trillion in the first 10 months.
The government also proposes to set up risk guarantee fund for infrastructure sector, she added.
After years of rapid expansion, the Centre's capital spending growth eases as private investment shows early signs of revival, points out A K Bhattacharya.
'The day that the market realises that they've overspent (on AI) and there's a sudden collapse in the capex, then India can start outperforming again.'
Even as the results of Siemens for the second quarter of 2025-26 (Q2FY26) were a mixed bag, the stock was the top gainer in the BSE 200 index, rising 4.92 per cent in trade. Most brokerages are neutral or positive on the company.
The ministries of Road Transport & Highways and Railways have exceeded the national average capital expenditure (capex) by spending 63 per cent and 57 per cent of Budget estimates (BE), respectively, in the first half of 2025-26 (FY26). The total capital expenditure for April-September of FY26 stood at 52 per cent of the BE, according to the latest data by the Controller General of Accounts (CGA).
The Budget allocation includes the construction of new lines and the purchase of locomotives, wagons, and coaches, among other works.
Private investment projects constitute well over 70 per cent of the nearly Rs 34 trillion of fresh investments announced in H1 this year.
India Ratings & Research (Ind-Ra) has projected the aggregate fiscal deficit of states to rise to 3 per cent of gross domestic product (GDP) in 2026-27 (FY27), from an estimated 2.8 per cent in 2025-26 (FY26), citing higher revenue expenditure amid election-related pressures and scheme cost-sharing requirements.
Companies are primarily using funds raised through fresh equity issuance to repay existing debt, followed by allocation for capital expenditure, according to a study by Bank of Baroda of over 200 filings with the market regulator between April and October 2025. The report stated that of these filings with the Securities and Exchange Board of India (Sebi) - covering both funds already raised in FY26 and future intent - 189 companies provided clear data on the purpose of the fund-raising.
Trade deals ease risks for Indian equities, but weak demand and stretched valuations raise questions over whether optimism -- especially in smallcaps -- can turn into a sustained bull run, points out Debashis Basu.
Capex, infrastructure development, and prudent fiscal management are the key focus areas in the Budget, says Nilesh Shah.
The fiscal tilt towards capex benefits companies in investment-related sectors like capital goods, defence equipment, engineering & construction and metal & mining. The planned cut in revenue expenditure will weigh on companies in consumption sectors like FMCG, consumer durables and retail.
The army has been behind the other two forces in capex since FY21.
'Credit growth in India remains in double digits, even though corporate borrowing is subdued.' 'Corporate credit is weak because companies are cash-rich and cautious amid global uncertainty.'
With the worst in terms of pricing pressures behind Tata Steel, its outlook is expected to improve. Europe has seen hot rolled coil prices rise this January after the European Union's (EU's) carbon border adjustment mechanism (CBAM) kicked in and further price improvements may be on the cards once import quotas come into play in June.
There is a minimum requirement of Rs 2.5 trillion capital expenditure every year and it is understood at the highest levels of the government.
On Agri Stack, Expenditure Secy V Vualnam says it's progressing well; using IT, farmers will be able to choose exact fertiliser quantities needed, reducing crowding at fertiliser outlets.
The Defence Acquisition Council (DAC) has recently approved procurement proposals worth Rs 79,000 crore across three services and it has cleared AoN (Acceptance of Necessity) of Rs 3.3 trillion in financial year 2026 (FY26).
Bharat Electronics, Power Grid, NTPC and HDFC Bank were among the other major gainers. However, Infosys, Tata Steel, Eternal and Tech Mahindra were among the laggards.
'We believe the truth is in the middle, and that India is at an important crossroads.'
Supported by strong buoyancy in public sector capital expenditure (capex), growth in infrastructure investment is expected to accelerate in 2025-26 (FY26) compared to 2024-25 (FY25), according to the First Advance Estimates of gross domestic product (GDP) for FY26 released by the National Statistics Office (NSO) on Wednesday.
Inflation data, trading activity of foreign investors and global trends would dictate sentiment in the stock market this week, according to analysts.
Finance Minister Nirmala Sitharaman's biggest challenge will be to find a new growth driver, particularly against the backdrop of a global economy ravaged by heightened uncertainty and fragmentation, financial markets on a precipice, and global commodity prices on a continued uptrend.
India is growing fast, but to keep growing strong, the government must make more things at home, create jobs, and spend money wisely, suggests Rajiv Memani, regional managing partner, Africa-India Region, EY.
Here are the key numbers to watch out for in the Union Budget for 2025-26:
The Budget reflects a clear focus on strengthening India's long-term prospects by leaning on nation-building sectors such as infrastructure, manufacturing, and technology while maintaining fiscal responsibility.
At present, e-mobike penetration in India is close to negligible, unlike the scooter segment, where electric scooters account for nearly 20 per cent of sales.
Tata Motors' commercial-vehicle (CV) business reported a 48 per cent year-on-year decline in net profit to Rs 705 crore in Q3FY26, even as profit before tax (PBT) rose 65 per cent to Rs 2,568 crore.
India has managed high government debt-to-GDP, a slowing domestic revenue engine, lower household savings and a more hostile geopolitical environment separately in the past. But together, they threaten to undo the growth narrative on which today's optimism rests, warns Debashis Basu.
'Given that India underperformed emerging markets by 28 per cent in 2025, the worst performance in over 30 years, the timing of the sharp STT hike could have been better.'
Maruti Suzuki sold more cars than ever before, earned more money, and saw many first-time buyers choosing small cars again.
The market capitalisation of BSE-listed companies eroded by Rs 9,40,581.75 crore to Rs 4,50,61,658.60 crore (USD 4.90 trillion) in a single day.
There are vexing questions around the disconnect between Nifty returns and portfolio returns, between economic growth and earnings growth, and finally, between earnings growth and market returns, points out Debashis Basu.
'We kept this Budget on a larger plank, rather than on one incident, however serious.'
'This Budget has a one-year agenda, which you can call the sprint, and the marathon is towards Viksit Bharat.'
'Global uncertainty is something which definitely occupies the minds of officials when we are preparing for the Budget.'
'I don't see how a company like OpenAI can honestly expect to generate revenue significant enough to maintain its spending habits via John and Jane Q. Public,' points out Sree Sreenivasan.
Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey on Thursday called for sharper disclosures in IPO (initial public offering) offer documents, particularly around risk factors, valuation rationale, objects of the issue, and utilisation of proceeds.
'When markets go into a budget with excessive optimism, the risk of disappointment is higher.'
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances