Global brokerage Citigroup highlighted a re-acceleration in capital expenditure growth across key government ministries, pointing to improving trends in rail, road and defence spending compared with FY26.
According to Citigroup, defence has emerged as the fastest-growing capital expenditure segment, supported by a broader pickup in central government spending. The brokerage noted that FY27 central government capex is projected at ₹12.2 lakh crore, reflecting an 11.5% year-on-year increase.
Citigroup also highlighted that public sector undertaking (PSU) capital expenditure is estimated at ₹4.8 lakh crore in FY27, broadly in line with an 11–12% growth range.
Looking beyond the near term, Citigroup pointed to medium-term positives including announcements related to high-speed rail and dedicated freight corridors, alongside a push to develop the data centre ecosystem.
The brokerage further noted that manufacturing scale-up in electronics and industrial segments remains a key structural theme underpinning capital goods demand.
Disclaimer: This article is based solely on the brokerage inputs provided. The views expressed are those of the brokerage and do not constitute investment advice or recommendations by the publication.
