States need to raise capex to 3% of GSDP by FY32 for developed India: Revenue secretary
Mint 1 hr ago·18 Sept 2026, 5:48 pm
India’s Revenue Secretary Arvind Shrivastava has asked state governments to lift their capital expenditure to about 3% of gross state domestic product by the 2031‑32 fiscal year. The target is part of a broader push to accelerate infrastructure spending and help the country reach a ‘developed’ status by 2047.
For investors, higher state capex can boost demand for construction, cement, steel and logistics services, while also spurring broader economic activity. The financing may involve more borrowing, which could pressure state fiscal balances and influence the yields on state bonds.
Investors will watch the next round of state budgets, any central‑government fiscal incentives, and the speed at which private firms take up new projects. Shifts in state bond yields or credit ratings will indicate how comfortably the spending target is being funded.
Excerpt from Mint
Revenue Secretary Arvind Shrivastava urged states to boost their capital outlay to 3% of GSDP by 2031-32 to aid India's growth into a developed economy by 2047, emphasizing private investment and better fiscal management. New Delhi: States should raise their capital outlay to around 3% of gross state domestic product…Read the original at Mint
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