Capital Expenditure

India's top conglomerates excelled in 2025 with significant M&As and capital expenditure, reflecting resilience amid global challenges. Experts caution against overleveraging and stress the importance of succession planning as India's top business houses prepare for sustained growth in 2026.

With private players only participating selectively and public spending remaining subdued, signs of a broader capex revival remain elusive.

The Centre plans to raise FY27 capital spending to ₹12 trillion, betting on infrastructure-led growth as private investment remains cautious amid global uncertainty.

The Centre may announce a ₹25,000-crore risk guarantee fund in the Union Budget to underwrite development risks in infrastructure projects, ease bank lending and revive private investment flows.

After years of aggressive hoarding, Indian corporations are finally dipping into their cash reserves to fund strategic acquisitions and record shareholder payouts. However, with capacity utilization remaining stubbornly low, the long-awaited private investment cycle continues to take a backseat.

As India approaches 2026, the infrastructure sector is poised for a transformative shift. This article explores how execution reforms, asset monetization and innovative strategies can enhance productivity and drive sustainable growth in highways, railways and ports.

The planned increase comes on the heels of unusually rapid spending this year, with the railways having exhausted more than 78% of its 2025-26 budget as of mid-November, its highest mid-year utilization on record.