CAPITAL EXPENDITURE BUDGET 2023

India Ratings pegs bank credit growth at 15.4% for FY25

India Ratings has forecasted a 15.4% loan growth for banks in FY25. The rating agency believes a turnaround in private capital expenditure could alleviate any pressure on overall credit growth during the fiscal year.

Adani Group to increase capex in FY25 to Rs 1.3 lakh crore from Rs 70,000 cr

Adani Group plans to increase FY2025 capital expenditure to Rs 1.3 lakh crore ($15.6 billion) from Rs 70,000 crore. Adani Green Energy will allocate 340 billion rupees to add 6 gigawatts of capacity. The conglomerate aims to leverage India's infrastructure growth, dismissing rumors of a stake in Paytm but open to fintech opportunities.

Industry pitches for tax reduction, rationalisation of duty structure in Budget

During a pre-budget meeting with Finance Minister Nirmala Sitharaman, industry representatives urged for reduced indirect taxes and rationalized duty structures. FIEO's Ashwani Kumar requested extending the Interest Equalisation Scheme for five years. Reliance Industries sought a review of tariffs on Chinese imports, and Nasscom pushed for easing transfer pricing rules.

Market Moves: Ashi Anand’s take on Indian IT and auto sectors

Ashi Anand, Founder and CEO of IME Capital, provides an in-depth analysis of the Indian IT and auto sectors. Anand highlighted the persistent strength in deal wins across IT companies despite weaker-than-expected revenue growth, attributing this to reduced discretionary spending.

States hike in healthcare expenditure to help meet India's '2.5% of GDP' target

India's expenditure on health, including clean water and sanitation, is on track to reach the target of 2.5% of GDP by 2024-25. States have surpassed the Centre's allocation to achieve a combined effort of 2.13% of GDP. Despite concerns over declining spending on healthcare systems, increased state allocations may help reach the 2.5% target by 2025.

Pre-budget meeting with Sitharaman: Economists suggest continuing capital expenditure, controlling fiscal deficit

Road construction down by 12.1% to 1288 km in the current financial year up to May 2024

As per the monthly update, released the ministry of road transport and highways (MoRTH) on Wednesday, the capital expenditure incurred during the period stood at Rs 57,925 crore till May 2024, which is 42.5% of the capital outlay under the vote on account provision for the first five months of 2024- 25.

Adani Airport raises RS 150 cr via bond issue

Adani Airport Holdings raises ₹150 crore debt at 9.95% for capital expenditures and transaction costs, issued senior secured non-convertible debentures maturing in June 2028.

Plan to tweak capital gains tax regime for debt mutual funds

The government is considering changes to the capital gains tax regime for debt mutual funds to provide relief for the Bharat Bond Exchange Traded Fund, amid concerns over the current taxation structure.

Modi 3.0: Growth sequel starring jobs, investment

The full budget, likely to be presented early in July, will detail specific measures toward this end. "The focus would be to promote labour-intensive growth that will create jobs, with continued emphasis on macroeconomic stability," a top government official aware of the details told ET. A host of measures on startups and taxation - including inverted duty structure correction, along with GST rate rationalisation - is under discussion, said the person cited above.

‘Make in India’ under a cloud takes shine off manufacturing

Investors sold manufacturing and infrastructure shares amid concerns over the BJP-led coalition government's performance in the elections, impacting stock indices and specific companies. Analysts suggest a cautious approach towards investments in these sectors.

At 5.6% of GDP, FY24 fiscal gap beats target

In absolute terms, the FY24 fiscal deficit stood at ?16.54 lakh crore, down from the revised estimate of ?17.35 lakh crore and FY23 level of ?17.38 lakh crore, showed the official data released on Friday. A lower-than-anticipated deficit in FY24 and a generous surplus transfer by RBI earlier this month make the government's goal of reining in fiscal gap at 5.1% of GDP in FY25 seem more realistic now, experts said.

India utilised 99.9% of its capex target in FY24

India has used Rs 9,48,506 crore in its capital expenditure in FY24, up from the revised estimate of Rs 9,49,555 crore. The government plans to narrow its fiscal deficit to 5.1% in FY25 from 5.8% in FY24. Private capex is expected to be an important driver of growth and job creation. India's GDP growth was 7.8% in Q4 of FY24, and the overall growth rate is now estimated to be 8.2%.

India's growth set to get more broad-based, says Morgan Stanley; pegs 6.8% for 2024

India's strong growth, driven by consumer and business spending, is expected to become more broad-based, according to Morgan Stanley. The global investment bank forecasts 6.8% growth in 2024, attributing it to global offshoring, digitalization, and energy transition. Retail inflation is at 4.83%, within RBI's comfort zone. S&P Global Ratings revised its outlook on India to positive, citing robust economic growth and fiscal policies.

FY25 capital expenditure outlay may be hiked by 10%

India may increase FY25 capital expenditure by 8-10% from the ₹11.11 lakh crore vote on account allocation, boosted by better tax revenue and a record RBI surplus transfer. The full budget, awaited post-election results on June 4, could see a surge in spending, as per a senior official.

ONGC's high investments to delay deleveraging: S&P

S&P Global Ratings stated that increased investments by Oil and Natural Gas Corp (ONGC) will slow its deleveraging over the next 12-24 months, affecting its 'bbb+' standalone credit profile. Despite a 2-3% drop in domestic production and lower realizations in FY2024, ONGC's EBITDA rose to Rs 1.1 lakh crore due to strong performance from subsidiaries MRPL and HPCL. S&P forecasts EBITDA to remain around Rs 1 lakh crore for FY2025 and FY2026, supported by increased production from the Krishna Godavari basin and international assets.

India's GDP is USD 3.95 trillion, says Union Minister Hardeep Singh Puri

While speaking in Chandigarh on Sunday, Puri said, "As per the public data released by IMF, our GDP is USD 3.95 trillion, and we are in the fifth position. Japan is in the fourth position with a GDP of USD 4.1 trillion. If our growth rate is going on at 7-8 percent and Japan's is flat, it's a matter of a few months, if not a year, and our economy will reach fourth place."

Telecom infrastructure sharing may spur gear sharing too, experts say

The current scenario could change with Telecom Regulatory Authority of India (Trai) recommending creating a separate category under the unified license for Digital Connectivity Infrastructure Provider (DCIP) authorisation. "...the proposed DCIP authorisation holder may create both active and passive digital connectivity infrastructure and share it with other TSPs and has to pay no license fee to the government," Trai said in its recommendations last month.

Adani Enterprises, Adani Energy Solutions to consider fund raising next week

Adani Enterprises and Adani Energy Solutions are planning to raise funds via equity through board meetings next week. Adani Enterprises previously raised Rs 12,500 crore through a QIP in May 2023.

How will RBI's Rs 2.11 lakh cr dividend payout to government help Indian economy? A Balasubramanian answers

​So, I think combination of these two things put together have made RBI to come with about highest ever dividend, especially at a time where the market is also generally getting, not market, in general, the bond market keeps a very close eye on fiscal numbers.

India's defence sector has opportunities for USD 138 bn over next 10 years

Nomura's 'India Defence' report projects a substantial USD 138 billion ordering opportunity in India's defence sector over FY24-32, driven by rising demand for equipment and services. Defence capital expenditure is expected to surge to 37% of the total budget by FY30, supported by government policies promoting indigenous manufacturing and technology development.

Ind-Ra raises India's FY25 GDP growth estimate to 7.1 pc: Strong government-private investment propel economic momentum

India Ratings and Research (Ind-Ra) has revised India's GDP growth estimate for FY25 upwards to 7.1 per cent, exceeding the Reserve Bank of India's forecast of 7.0 per cent. The agency's outlook is supported by government capital expenditure and a revival in private sector investment. Challenges include uneven consumption demand and export sector obstacles. Despite positive indicators, constraints remain, such as high inflation and geopolitical uncertainties affecting exports.

Road ministry capex surpasses Rs 3 lakh crore in 2023-24

Ministry of Roads Transport and Highways achieved a record capital expenditure in 2023-24, constructing 12,349 km of national highways. Despite exceeding capex targets, project awards and constructions fell short of initial goals.