The surge is driven by a substantial focus on infrastructure development by several state governments. Here is the list of the top 10 states with the highest CAPEX spending in the last five years.
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In the last five years (from FY19 to FY23), India has experienced rapid growth in capital expenditure (CAPEX) by both central and state governments. This growth is evident in the form of new highways, railway lines, and other infrastructure development projects. Data from the RBI reveals that over this period, all Indian states and Union Territories (UT) collectively spent a substantial Rs 43.63 lakh crore on CAPEX. This marks a significant increase from the Rs 24.81 lakh crore spent in the preceding five-year period (from FY14 to FY18). The surge is driven by a substantial focus on infrastructure development by several state governments. Here is the list of the top 10 states with the highest CAPEX spending in the last five years.
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Government Capital Expenditure, or CAPEX, encompasses spending on infrastructure development, including roads, bridges, dams, schools, colleges, hospitals, railway lines, airports, and seaports. According to budget estimates, all states and UTs combined spent Rs 11.92 lakh crore on CAPEX in FY23, recording a 16 per cent year-on-year (YoY) jump from the Rs 10.27 lakh crore spent in FY22.
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Among the major states, Uttar Pradesh tops the list, spending Rs 5.31 lakh crore on infrastructure development from FY19 to FY23, followed by India’s largest economy, Maharashtra, which invested Rs 4.39 lakh crore in CAPEX.
The third spot is claimed by South Indian economic powerhouse Tamil Nadu, contributing Rs 2.84 lakh crore to infrastructure development, followed by another South Indian state, Karnataka, with Rs 2.76 lakh crore in CAPEX over the last five years. At the fifth rank is the Central Indian state Madhya Pradesh, with a CAPEX of Rs 2.50 lakh crore.
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Number six is Gujarat with a total capital expenditure of Rs 2.49 lakh crore in the last five years, followed by West Bengal with Rs 2.38 lakh crore spent on infrastructure.
The eighth spot goes to Telangana with Rs 2.32 lakh crore, followed by Rajasthan with Rs 2.09 lakh crore, and number ten on this list is Andhra Pradesh, with a total CAPEX of Rs 1.88 lakh crore in the last five years.
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In FY23, Uttar Pradesh spent Rs 1.49 lakh crore, Maharashtra Rs 1.21 lakh crore, and Tamil Nadu Rs 76 thousand crore, making them the top three states with the highest CAPEX spending in the year.
