Despite support from Centre, big states lagged on capex in FY23

Due to crucial state elections in 2022 and 2023, many state administrations chose to focus on scheme and subsidy spending

In the backdrop of private sector investment plans taking a hit due to the Covid-19 pandemic, it is the public sector that has been bearing the weight of capital expenditure and new infrastructure spending in the Indian economy in the past few years.

Chief Economic Advisor V Anantha Nageswaran said last month that in the last 10 years, public sector capital investment has increased from Rs 6.8 trillion to Rs 21.2 trillion, at a time when the financial sector companies were still repairing their balance sheets. By public sector, Nageswaran meant the central and state governments and state-owned enterprises.