Budget 2025: India Boosts Capital Expenditure to Drive Growth | ABP NEWS

The Indian government's recent focus on increasing capital expenditure (CapEx) aims to boost infrastructure development, including roads, highways, digital, and electrical infrastructure. This is expected to create a positive economic impact, especially in sectors like real estate, construction, and MSMEs, which benefit from increased employment opportunities. Infrastructure growth can trigger a multiplier effect, where every rupee spent leads to greater economic returns. Additionally, efforts to boost demand through incentives, especially for the middle class, are being considered, as urban consumption has been under stress. Despite inflation, the middle class has struggled with limited spending capacity, affecting overall consumption in the economy. The government’s strategy also includes encouraging sectors like footwear, toys, and climate-focused industries. A key concern is the potential regulatory impact on civil liberties, with the creation of high regulatory committees to address these issues. The government's move aims to balance resources with incentives to revive demand and consumption.