Centre to review capex strategy, may expand focus to newer sectors like ship building urban infra

With an ambitious capital expenditure Budget of Rs 11.21 lakh crore for the fiscal, the Centre is likely to soon review its strategy to ensure that the funds are spent optimally and continue to give a push to domestic growth. Sectors such as ship building, ports and urban infrastructure could get greater focus as the Centre looks to expand its capex spending beyond traditional infrastructure sectors.  

According to government sources, the Centre is set to discuss and review capital expenditure plans with key line ministries such as roads and highways and railways for the fiscal and look at possible new sectors for a capex push.

“The need to review the capex strategy is now being felt as there is a view that key infrastructure ministries like roads and railways may be reaching a saturation point,” noted a person familiar with the development.

There have been some concerns that public capex may be slowing down, after a robust start this fiscal. While this could be partly due to the ongoing monsoons, it needs to ensure that it picks up later in the year and projects are ready, sources said.

With global uncertainty casting a shadow on domestic economic growth, sources further said that the Centre will continue to push ahead with capital investments to ensure that growth does not falter.

Continue public capex is also essential given that private sector capex is yet to pick up fully. The government is also looking into this issue and remains hopeful that private sector capex will recover in the second half of the fiscal.

The Centre had stepped up on capital spending in the first two months of the fiscal in April and May 2025 and it had amounted to Rs 2.21 lakh crore or 19.7% of the Budget estimate. This was a sharp rise from the Rs 1.43 lakh crore it had spent in April and May 2024.