Budget 2026: Capex Doubles Down, Highest in a Decade; India Inc Cheers Growth Push

• Union Budget 2026 prioritizes capital expenditure, with FM Nirmala Sitharaman announcing ₹12.2 lakh crore for FY 2026–27, the highest in a decade.
• The capex outlay marks a 9% increase over the previous year's budgeted estimate, maintaining capex as a share of GDP at around 3.1%.
• Effective capital expenditure, including grants for capital asset creation, is projected to surge by 22.1% to ₹17.14 lakh crore in FY27, reaching 4.4% of GDP.
• The government aims to upgrade legacy industrial clusters for efficiency and competitiveness, leveraging post-Covid capex for sustained growth.
• Industry leaders and economists, including HDFC Bank, Kotak Mahindra Bank, Piramal Finance, AU Small Finance Bank, and Aikyam Capital Group, lauded the growth-oriented, fiscally disciplined approach focusing on manufacturing, services, and MSMEs.

Why It Matters: Budget 2026 emphasizes record capital expenditure to drive growth, receiving widespread approval from India Inc.