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Domestic economic forecast

India's FY27 Capex Forecast by State Bank of India

Analysis based on 6 articles · First reported Jan 27, 2026 · Last updated Jan 27, 2026

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Articles
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General
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The report from State Bank of India projects significant capital expenditure by India's central government, which is expected to boost infrastructure and economic growth, positively impacting related industries. However, concerns about global uncertainty and Petroleum price volatility could introduce market risks.

Financial services Infrastructure Government

The State Bank of India has released a report forecasting that India's central government capital expenditure will exceed Rs 12 lakh crore in FY27, representing a 10% year-on-year growth. This sustained increase in government-led spending, which has risen from Rs 2.5 lakh crore in FY16 to Rs 11.2 lakh crore in FY26, underscores India's focus on infrastructure development and economic growth. The report also projects net central government borrowing for FY27 to be around Rs 11.7 trillion. Additionally, it highlights global uncertainties, including volatility in equity and bond markets, and potential risks from Petroleum prices, as the Union Budget 2026 approaches.

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