Capital Expenditure: A Catalyst for India's Economic Revival

Economist Nagesh Kumar highlights the need for enhanced capital expenditure and infrastructure spending in India's 2025-26 Budget to stimulate sustainable economic growth. He emphasizes the importance of countering post-COVID economic slowdown and addressing rupee depreciation through strategic fiscal policies.

In anticipation of the 2025-26 Budget, economist Nagesh Kumar has urged Finance Minister Nirmala Sitharaman to prioritize capital expenditure and infrastructure spending. He believes these measures are crucial for sustaining and boosting economic growth amidst recent slowdowns.

Kumar remarked on the necessity of maintaining public spending momentum established in previous budgets. As global uncertainties loom and domestic growth moderates, he emphasized the importance of robust and sustainable economic policies.

Additionally, he addressed rupee depreciation, attributing it largely to the dollar's strength. Kumar called for managing the rupee at a competitive rate to benefit India's exports and manufacturing sector. He also warned against the resurgence of short-term 'freebies' and advocated for strategic allocation of resources for long-term development.

(With inputs from agencies.)