Capital expenditure by Central Public Sector Enterprises (CPSEs) and key central agencies, including Indian Railways and the National Highways Authority of India (NHAI), grew 13% year-on-year in the April–October period of 2025–26, underscoring continued momentum in government-led infrastructure investment.
According to official data, total capex by these entities stood at Rs 4.4 lakh crore in the first seven months of FY26, compared with Rs 3.9 lakh crore during the same period last year. This represents 56.5% of the full-year target of Rs 7.85 lakh crore, a higher achievement rate than the 50% recorded in the year-ago period.
However, the pace of investment moderated in October 2025, with capex rising by only 6% year-on-year to Rs 58,327 crore. This followed an exceptionally strong September, when spending surged 60% to Rs 1.13 lakh crore, reflecting accelerated project execution before the festive season.
Indian Railways and NHAI remain the primary drivers of capital expenditure, together accounting for an estimated Rs 4.4 lakh crore, or 56% of the total FY26 target for CPSEs and other central agencies. Both entities are largely budget-funded and represent nearly 40% of the Centre’s overall capital expenditure estimate for the fiscal year.
Petroleum sector undertakings, which typically finance projects through internal accruals and borrowings, are projected to invest around Rs 1.3 lakh crore in FY26. Sectors such as power, coal, and steel are also expected to sustain robust investment activity, reflecting ongoing capacity expansion and infrastructure modernisation.
In FY25, these state-run entities had invested Rs 8.1 lakh crore, exceeding the annual target of Rs 7.86 lakh crore by 3%. Given the progress so far in FY26, they appear on track to surpass this year’s target as well.
The government has been pursuing a public capex-led growth strategy — driven by the Union government, state governments, and public enterprises — to spur private investment, create employment opportunities, and strengthen the economy’s productive capacity. The sustained rise in CPSE and infrastructure spending signals the Centre’s continued commitment to this growth revival strategy.