budget-2025-to-drive-growth-with-capex-welfare

The upcoming Union Budget for 2025 is expected to focus heavily on promoting growth through a significant increase in capital expenditure (CAPEX).

 

According to a report by Axis Securities, this focus will target critical sectors such as infrastructure, social welfare, and green technologies, all of which are expected to play a vital role in driving India's economic recovery and growth.

 

Axis Securities has highlighted that the government's ongoing policy reforms, such as Atmanirbhar Bharat, Make in India, and the Production-Linked Incentive (PLI) scheme, are likely to continue into the fiscal year 2026.

 

These initiatives, aimed at boosting self-reliance and fostering domestic manufacturing, are set to receive further support in the coming years.

 

The government's strategy is anticipated to maintain a delicate balance between infrastructure development and social welfare programmes, which will contribute to the nation's overall growth momentum.

 

A significant portion of the budget is expected to be directed towards infrastructure projects, including the construction of roads, metro systems, water supply systems, and railways.

 

Additionally, the defence sector and digital infrastructure, which have seen increased attention in recent years, will also continue to be prioritised. These projects will not only bolster the nation's infrastructure but are also expected to create job opportunities and attract long-term investments.

 

Alongside infrastructure, the government is likely to continue its emphasis on social welfare initiatives, which have become a cornerstone of the country’s development agenda.

 

These initiatives aim to improve the living standards of vulnerable sections of society by providing financial support and access to basic services such as healthcare and education.

 

Another key area of focus for the 2025 Budget is the expansion of private CAPEX. Over recent years, private sector investments have remained somewhat sluggish.

 

However, with the anticipated extension of the PLI scheme to additional sectors, private capital expenditure is expected to receive a boost. This would not only foster industrial growth but also improve the overall investment climate in the country.

 

The expected CAPEX allocation for FY26 is estimated to be between ₹11 trillion and ₹11.5 trillion, marking an increase of 15-17 per cent over the revised CAPEX spending for FY25.

 

This considerable rise reflects the government’s commitment to driving growth through sustained infrastructure development and boosting private sector investments.