Capital Expenditure Surge: A Vision for India's Infrastructure Future

Larsen and Toubro's CFO, R Shankar Raman, anticipates a 10% increase in capital expenditure in India's FY27 budget. Despite concerns about private capital expenditure growth, he sees no fear of resource crowding due to government spending. Infrastructure is earmarked as a cornerstone for India to achieve developed economy status by 2047.

Larsen and Toubro's Chief Financial Officer, R Shankar Raman, projects a 10% rise in capital expenditure for India's FY27 budget, reflecting a focus on infrastructure to spearhead economic development by 2047. Raman foresees no hindrance from the state's high spending due to sufficient liquidity in the system.

He emphasized the role of infrastructure as pivotal for India's aspirations to become a developed economy by 2047. This sentiment was supported by the substantial Rs 11 lakh crore commitment already made in the FY26 budget. While endorsing the anticipated increase, he flagged issues over low-bidder project allocations causing execution delays.

Addressing manpower shortages affecting the engineering and construction sectors, Raman pointed to shifts in workforce mentality post-pandemic. He calls for projects closer to workers' residences to mitigate employment reluctance. On a hopeful note, he supports the government's receptiveness to industry input in budget formulation as proof of governance maturity.

(With inputs from agencies.)