Lighthouse's Ganguly: High Capex on Infra, Digital, Manufacturing Key for 7-8% GDP Growth

• Prosenjit Ganguly of Lighthouse Canton emphasizes sustained high capital expenditure on hard infrastructure, digital systems, and advanced manufacturing to achieve 7-8% GDP growth.
• Targeted budget measures for job creation, MSME resilience, renewable energy, EVs, and defense manufacturing are crucial for domestic demand and global competitiveness.
• Policymakers are considering consumption-boosting measures like income tax rationalization, higher standard deductions, rural income support, and Agri-infrastructure investments.
• India's economy remains stable and the fastest-growing globally, with GDP print validating macro solidity despite geopolitical headwinds and protectionism.
• FPI outflows in 2025, particularly from IT, could reverse in 2026 due to weakening INR, stable macro, and expected earnings rebound; banking sector shows strong credit growth potential.

Why It Matters: Sustained high capex, targeted budget measures, and consumption boosts are vital for India's 7-8% GDP growth.