The PM Narendra Modi government's interim budget is expected to raise allocation to the Indian railways, continuing the capex spree in the infrastructure space, according to brokerages.
Despite moderation in government capex growth, analysts at Nirmal Bang Securities Pvt. say it will continue to be dominated by roads and railways.
Railways may see the highest increase in the interim budget allocation, with spending up by around 40% year-on-year, according to the brokerage. The sector led in central government and CPSE project announcements in FY24.
The ongoing redevelopment of Nagpur Jn. of Maharashtra is progressing rapidly. Upon completion, station will improve passenger comfort & amenities. #RailInfra4Maharashtra pic.twitter.com/kGE2t62IYG
Allocation for railways increased 49% over FY23 (budget estimate) to Rs 2.41 lakh crore in FY24, Axis Securities Ltd. said. The government capex will further increase by 10-15% in FY25, and focus is likely to continue on developing the country's public infrastructure, it said.
Dedicated allocation to larger infrastructure projects like High-Speed Rail is expected, which would support broader objectives of the National Infrastructure Pipeline, the brokerage said.
Finance Minister Nirmala Sitharaman will present the interim budget on Feb. 1.
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