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Rs 12.22 Lakh Crore Capex Target for 2026-27: Can Public Investment Crowd In Private Capex?

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
24 Aug 2026
~2 min
Source: Indian Express
Key Data:Rs 12.22 lakh croreRs 17.15 lakh crore22.6%4%Rs 11.44 lakh crore74.8%
Bodies:National Statistical OfficeMinistry of FinanceEconomic Survey
Practice MCQs from today's news ▸
What This Article Covers

1.Centre's capex target for 2026-27 is Rs 12.22 lakh crore; effective capex including grants to states is Rs 17.15 lakh crore.

2.Share of capital spending in total central expenditure rose from 12.5% (FY20) to 22.6% (FY25).

3.Success of capex strategy measured not by budget allocation but by productivity gains, private investment response, and capability building.

The Big Picture
Prelims · HighMains · High

India's capex strategy is a key driver of growth, with effective capital expenditure reaching Rs 17.15 lakh crore for 2026-27. The article examines whether public investment can crowd in private investment, the need for quality over quantity, and the next frontiers like digital infrastructure, AI, and semiconductors.

Exam Lens

Quick Exam Facts From News

Capex Target 2026-27Rs 12.22 lakh crore
Effective Capex 2026-27Rs 17.15 lakh crore
Share of Capital Spending (FY25)22.6% of total expenditure
Effective Capex as % of GDP4%
PLI Investment (by Sep 2025)> Rs 2 lakh crore
Incremental Production/Sales under PLI> Rs 18.7 lakh crore

1-Minute Revision

  • ›Capex Target 2026-27: Rs 12.22 lakh crore
  • ›Effective Capex 2026-27: Rs 17.15 lakh crore
  • ›Target this Data: Rs 12.22 lakh crore (capex target 2026-27)
  • ›Target this Data: Effective capex Rs 17.15 lakh crore (2026-27)
  • ›Target this Data: Share of capital spending in total expenditure = 22.6% (FY25)
  • ›Target this Report: Economic Survey 2025-26

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry is primarily responsible for presenting the Union Budget and allocating capital expenditure in India?

Q2Statement-basedHard

Consider the following statements:

1. The Centre's capex target for 2026-27 is Rs 12.22 lakh crore.

2. Effective capital expenditure includes only the Centre's own capital spending.

3. Private corporate capex in 2025-26 was estimated at Rs 11.44 lakh crore.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the Economic Survey 2025-26, what was the share of capital spending in total central government expenditure in FY25?

Q4Application/ImpactMedium

What is the primary objective of the Production-Linked Incentive (PLI) schemes as discussed in the article?

All 15 MCQs ▸
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