Modi government's FY27 capex to focus on these sectors
What's the story
The Indian government's capital expenditure (capex) for the fiscal year 2026-27 will be focused on sectors such as shipbuilding, national highways, railways, and metro train projects. Expenditure Secretary V Vualnam revealed this in a post-Budget interview with PTI. The total expenditure budgeted by the government for FY27 is over ₹53.47 lakh crore, of which around ₹12.22 lakh crore is expected to be allocated as capex for physical infrastructure development.
Sector focus
Emerging sectors and ongoing projects
Vualnam emphasized that the government will continue to focus on sectors with major ongoing and new projects, such as national highways, railways, and urban development (including metro train projects) in the upcoming fiscal year. He also highlighted shipbuilding as an emerging infrastructure sector where India intends to increase its global presence. Currently, only 5% of India's import-export cargo is transported by Indian-owned ships.
Investment strategy
Government's push for maritime infrastructure
In September 2025, the Cabinet had approved a ₹69,725 crore package to revitalize India's shipbuilding and maritime sector. The plan includes a four-pronged strategy to boost domestic capacity, enhance long-term financing, promote greenfield and brownfield shipyard development, and improve technical capabilities and skilling. It also aims at legal, taxation and policy reforms for building a robust maritime infrastructure.
Growth trajectory
Public capex has grown exponentially since FY15
The public capex has grown exponentially from ₹2 lakh crore in FY 2014-15 to an estimated ₹12.2 lakh crore for FY27. This is 4.4% of the GDP, the highest ever. For the current fiscal year, the government had revised its capex estimate down to ₹10.95 lakh crore from an original budget of ₹11.21 lakh crore.