The Central Public Sector Enterprises (CPSEs) and other central agencies, notably the railways and the National Highways Authority of India (NHAI), demonstrated a significant uptick in capital expenditure during the first half of 2025-26, with September itself recording a remarkable 60% growth.
Total capex for September 2025 reached Rs 1.13 lakh crore, up from Rs 70,726 crore in the year-ago month, reflecting a robust push towards infrastructure development. This growth contrasts with earlier months’ volatility, including a 23% dip in July, highlighting a strong recovery and strategic focus on project execution in September 2025 (see chart).
Railways and NHAI lead the infrastructure push
For the period April to September 2025, cumulative capex stood at Rs 3.85 lakh crore, a 14% increase from Rs 3.38 lakh crore in the same period last year, signalling strong momentum in government-led economic initiatives. These entities’ capex, with an annual target of at least Rs 100 crore, stood at 49% of the annual target of Rs 7.85 lakh crore, in H1FY26. The achievement was 43% of the relevant target in H1FY25.
Indian Railways, one of the biggest public sector investors, has incurred a capex of Rs 1.42 lakh crore in April-September of FY26, utilising 56.5% of its annual target.
Strategy for public capex-led growth
In FY25, these state-run entities invested Rs 8.1 lakh crore, or 103% of the target of Rs 7.86 lakh crore. Going by the progress so far, these agencies are likely to exceed the FY26 target as well.
In FY26, railways and NHAI capex is estimated to be Rs 4.4 lakh crore or 56% of the state-run agencies’ capex target for FY26. These two entities are funded through the budget and account for 40% of the Centre’s capex estimate for FY26.
Petroleum sector undertakings, which largely invest from their own accruals and borrowings, in aggregate, are estimated to invest Rs 1.3 lakh crore in FY26.
The Centre is following a public capex – the union government, states and public enterprises—led economic growth revival.