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CPSE capex surge: April-January witnesses 20% growth to Rs 6.09 trillion

15 February 20243 mins read by Angel One
Explore how India's central public-sector entities are driving economic growth through robust capital expenditure, spanning railways, highways, and energy sectors.
CPSE capex surge: April-January witnesses 20% growth to Rs 6.09 trillion
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In India’s economy, the role of public sector entities, particularly central public-sector entities (CPSEs), is paramount. These entities have been pivotal in driving capital expenditure (capex) and fostering economic growth. Let’s delve into the latest figures and trends shaping this crucial aspect of India’s economic development.

CPSEs: Driving Capital Expenditure

From April to January of the fiscal year 2024, CPSEs collectively achieved an impressive 83% of their combined capital expenditure target, amounting to Rs 6.09 trillion. This robust spending has provided substantial support to the revival of public capex-led economic growth.

Sectoral Focus

Key players like the Railway Board and the National Highways Authority of India (NHAI) have been instrumental in driving infrastructure development. In this period, the Railway Board invested Rs 2.03 trillion, primarily focusing on capacity enhancement projects such as electrification and high-speed train introductions. Similarly, NHAI invested Rs 1.44 trillion, boosting job creation and infrastructure expansion.

Petroleum CPSEs: Catalysts for Growth

Petroleum CPSEs have significantly contributed to India’s economic landscape by ramping up refining capacities and embracing green transitions. Entities like Indian Oil Corporation (IOC) and ONGC have surpassed their capex targets, reflecting a proactive approach towards growth and sustainability.

Diverse Investments

Fuel retailer-refiner HPCL and power generation major NTPC have also showcased robust investment performances, surpassing their respective capex targets. These investments not only bolster infrastructure development but also contribute to job creation and energy security.

Role of Public Sector in Capital Formation

The capital formation in India has predominantly been led by the public sector, including central and state governments, and state-run enterprises. This underscores the critical role these entities play in driving economic growth and development initiatives.

Economic Outlook

The first advance estimate of national accounts reveals a promising outlook for India’s economy, with real GDP projected to grow at 7.3% in FY24. Investments, particularly gross fixed capital formation (GFCF), are expected to be the primary driver of this growth, highlighting the significance of sustained capital expenditure efforts.


As we navigate through the intricate dynamics of India’s economic landscape, the robust capital expenditure efforts by CPSEs stand out as catalysts for growth and development. With strategic investments across sectors and a conducive policy environment, India is poised to realize its potential and embark on a trajectory of sustainable prosperity.

In conclusion, the synergy between public sector entities, strategic investments, and a favorable economic outlook sets the stage for India’s continued growth story, shaping a brighter future for generations to come.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions. 

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