GOVT CAPEX
Budget Preview: Govt could use part of RBI dividend to reduce fiscal deficit, says Motilal Oswal
A transfer of Rs 2.11 lakh crore by the RBI implies excess receipts of about Rs 1.5 lakh crore in FY25, the MOFSL note said. MOFSL sees the new government largely retaining its tax and non-debt capital receipt (including disinvestment) projections as presented during the interim Budget in February.
Capital goods companies expected to post 9-11% revenue growth rate in FY25
As per the analysis, operating margin could moderate 80-100 basis points to 12-13% in fiscal 2025 as the market scenario continues to be highly competitive and exports remain sluggish.
Will govt maintain its investment-led growth strategy in the upcoming Budget? Harish Krishnan answers
The approach that we have chosen is different which is that we are buying only from the IPL teams. The IPL teams are the mutual fund equivalents in our case which themselves are scouting across all of these Ranji Trophy players.
ETMarkets Smart Talk: Stock market is hoping for a progressive, non-populist & capex focused Budget from Modi 3.0: Sameer Kaul
Ahead of major defining events, market participants steadily build positions. Now once the event crystalizes all participants move in a herd for the exit all at once which causes these gyrations and spikes in the volatility index (up 24% on the election outcome day).
One District One Product scheme is catalysing UP's export potential, says Alok Kumar, Principal Secretary, MSME and Export Promotion, UP Govt
The One District One Product (ODOP) scheme has made a big difference in many industrial segments across UP, and it has also been a significant catalyst for the country's economic growth, according to Alok Kumar, Principal Secretary, MSME and Export Promotion, UP Government.
The same old Modi govt: Portfolios indicate policy continuity
The allocation has changed only slightly with key portfolios remaining with the Modi 2.0 ministers. The allocation also indicates the Modi government might not be as susceptible to pressure from allies as many expect.
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Govt may increase emphasis on consumption and job creation: Pramod Gubbi
So, we went into the elections quite strongly positioned for a potential adverse event. But it was not because we expected any adverse event. It is just our style of investing. So, to that extent, there has been almost next to nothing in terms of changes that we have made pre or post elections.
Govt will continue to focus around power & capex themes: Vikash Kumar Jain
This time when the verdict is less strong and there are relatively more doubts whether there is going to be some dilution on the policy path as compared to being unequivocally focused on capex, I think there is even more reason we could be towards the fag end of this index, if I may choose to call it that, that is the Modi index.
Lok Sabha Results: Will a fractured mandate for NDA impede new govt's infra and capex push?
The 2024 Lok Sabha elections deliver a fractured mandate, influencing economic reform outlook. Experts recommend focusing on public capex and high-tech sectors for growth. Tanvee Gupta Jain predicts fiscal leeway for populist spending, supported by progress in implementing labor laws.
Govt to focus on capex & infra to propel next phase of growth: Indranil Sengupta
I would say that valuations that are concerned and whoever is getting into the market right now should also clearly take that into account. Because once you start losing the support of valuations, then obviously you are taking that much more of a risk. But then that said, I mean, a lot depends on where equity markets grow in the US because that clearly has a big impact globally.
Bond market happy with RBI cheque to govt; will wait for July Budget before any move: R Sivakumar
R Sivakumar shares insights on the government budget, interest rate regime, and investment strategies in light of RBI's dividend and market optimism. Sivakumar says the bond markets have not run away and that implies markets are going to wait for the final Budget before it makes sense to draw a longer-term trend from this data.
Rs 2.1 lakh crore: RBI’s record dividend swells govt coffers
The benchmark bond yield retreated below 7% on expectations that New Delhi would now need to borrow less this fiscal year. “The higher dividend is welcome, of course,” finance secretary TV Somanathan told ET. “It exceeds our estimate by 0.2-0.3% of GDP.” In the interim budget, North Block had factored in receipts of Rs 1.05 lakh crore under dividends and profits.
Centre used capex to build quality infrastructure: FM Nirmala Sitharaman
Sitharaman said the share of capex in overall expenditure went up to over 21% in 2023-24 as against just 12% in 2013-14 during the UPA regime, when infrastructure development remained grossly neglected.
RBI's latest norms may derail Modi govt's flagship economy driver
RBI's draft guidelines propose increased provisioning for infrastructure projects under construction, potentially impacting India's capital expenditure momentum. Banks fear higher provisions could elevate interest rates, delay projects, and stress loans. This move could impede the Modi government's capex drive, which has invigorated private sector activity. Despite historical loan default trends, RBI's rationale for these stringent measures remains unclear
Robust govt capex, improvement in business confidence to push growth: Official
"The major reasons cited for India's growth prospects in FY25 include robust public investment/ capex push by the government, sustained growth in business and consumer confidence, and strong services sector, among others," industry body PHDCCI said in a statement quoting Sensarma.
Domestic consumption demand, govt capex lent support to India Inc's credit profile: ICRA
ICRA's latest report highlighted India Inc's credit profile in the 2023-24 fiscal year, citing domestic consumption demand and infrastructure spending as key supports. Despite challenges like rising borrowing costs and global events, rating upgrades outpaced downgrades. Sectors like aviation and hospitality saw positive momentum, while challenges persisted in others. The agency maintained a positive outlook for the hospitality sector in 2024-25 and noted improvements in credit profiles, with a decrease in instances of defaults.
Govt spent 80% of revised FY24 capex outlay
The official said the collections under various small savings scheme remain healthy this fiscal and will be in sync with the revised estimate. The net mop-up for senior citizens breached ₹90,000 crore as of end-January this fiscal, way above that of ₹37,362 crore in the whole of FY23. The surge is mainly driven by the 2023 Budget move to double the deposit limit under the scheme to₹30 lakh.
ETMarkets Smart Talk: It is a 10/10 Budget from Modi govt; Renewable good theme for next 10 years: Naveen Kulkarni
Naveen Kulkarni says, PSUs and Capex-oriented sectors are likely to benefit the most from Budget 2024. PSUs will see lesser supply from the government, and consistent growth in government capex will drive an uptick in capex-oriented sectors. There will not be many tweaks in portfolios, but focus should continue to be value MFs, with some emphasis on large-cap schemes as small caps are getting into an overheated zone.
Budget 2024: Is govt trying to manifest growth with the power of 11:11?
The number that caught the attention of not only analysts but various numerologists as well was the capital expenditure number which was Rs 11.11 lakh crore for FY24-25. The angel number 1111 carries profound significance and guidance. It is believed to hold a message of hope, positivity, and alignment with the divine.
Budget 2024: From a record high, Modi govt’s infra juggernaut is now likely to slow down
Budget 2024: A year after announcing a record capital expenditure push, the Central government's allotment towards capex is likely to plunge in FY25 amid a continuous focus on fiscal consolidation, economists said. The budgeted capex target has been elevated to 3.3% of GDP, the highest in nearly 18 years. However, economists expect capex growth to decline to around 10% year-on-year in FY25, given the government's medium-term fiscal consolidation path.
Modi govt's capex thrust key during Budget as pvt investment is still weak: Ex-NITI VC Kumar
Former NITI Aayog vice chairman Rajiv Kumar emphasized the Indian government's need to prioritize capital expenditure in the upcoming interim budget to bridge the infrastructure gap and boost the economy. He expects continued focus on investment and fiscal consolidation in the budget, with the government achieving its targets through improved tax-to-GDP ratios and rising capital expenditure.
ETMarkets Smart Talk: Govt may set fiscal deficit target at 5.2%-5.4% of GDP in FY 2024-25 in Budget 2024: Christy Mathai
Christy Mathai says: The government is expected to set the fiscal deficit target at 5.2%-5.4% of GDP in FY 2024-25. The focus will be on moderating capex aggression and addressing tax inconsistencies. Bond investors are not likely to see any favorable moves in this budget. The government will continue its initiatives for import substitution and export opportunities. Sectors linked to government capex and rural recovery will be watched closely. Prudent asset allocation and systematic investing are recommended for equity markets.
Budget 2024: Govt likely to maintain capex momentum in FY25
Union budget 2024: The government is expected to continue prioritizing capital expenditure, particularly in the infrastructure sector, in the upcoming Budget to drive economic growth. The government has allocated a record high of Rs 10 lakh crore for capex during the current financial year, with a consistent increase. The upcoming Budget is expected to allocate a substantial amount for capital expenditure, as it has a multiplier effect on the economy and attracts private investment.
Govt may prune FY25 fiscal gap target to 5.3-5.4% on slower capex
India's fiscal deficit target for FY25 is expected to decrease significantly in line with post-Covid consolidation plans, potentially dropping to a range of 5.3-5.4% of GDP from the current year's 5.9%. Despite a slowdown in capital asset investments, gross market borrowing is anticipated to remain high, with estimates for FY25 around ₹15.3 lakh crore. The reduction in the fiscal deficit target is attributed to a slower pace of capital expenditure, providing room for consolidation. The government is committed to lowering the fiscal deficit to below 4.5% of GDP by FY26.
Govt capex and welfare programmes to generate demand soon: Hero Motors CEO
Niranjan Gupta, CEO of Hero Motors, believes interest rates have already peaked and will likely start to decrease in a few quarters. Confidence in the rural economy has been returning since the last festive season, and government capex and welfare programs are expected to generate demand soon. Hero Motors is preparing for the EV market by increasing the capacity of their current product and planning to launch products in the mid, affordable, and B2B segments
Budget news: Modi govt may lower budget gap by at least 50 bps, up capex by 20% in FY25
India plans to lower its budget deficit by at least 50 basis points in 2024/25 from its target of 5.9% of GDP, while raising capital spending by up to 20%. This move is expected to depend on increased revenues and efforts to curb subsidies. The government is confident of meeting its 5.9% target for the current year ending on March 31.
Govt considering 15-20% hike in capex in FY25 interim budget
INDIA-ECONOMY/CAPEX (URGENT)India govt considering 15-20% hike in capex in FY25 interim budget - CNBC-TV18
MNC capital goods stocks gain traction on govt's planned infra and capex push
This optimism is driven by government initiatives that support incremental capital expenditure, a revival in specific segments of the private sector, and a more favourable growth outlook in international markets.
Govt capex-led order books lure FPIs to capital goods
The trend in order inflow and project execution for leading capital goods companies remains encouraging. India’s largest infrastructure company L&T met two-third of its order inflow guidance for FY24 in the first six months. Its order prospects for the second half of the year grew by 39%.
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