Reacting to the Union Finance Minister Nirmala Sitharaman's announcement of a 9 per cent increase (₹12.2 lakh crore) in capital expenditure for the coming financial year in the Union Budget 2026–27, CRISIL claimed that this is “lower than the likely need”.
Sitharaman had said the target for capex will be raised to ₹12.2 lakh crore for FY27 from ₹11.2 lakh crore earmarked for the current fiscal year and announced a slew of measures to boost infrastructure in the country.
"Public capital expenditure has increased manifold from ₹2 lakh crore in 2014–15 to an allocation of ₹11.2 lakh crore in 2025–26. In the coming year, that is, the financial year 2026–27, I propose to increase it to ₹12.2 lakh crore to continue the momentum."
According to a CNBC-TV18 report, CRISIL observed that "focusing on areas such as earthmoving and mining equipment, heavy electrical machinery, machine tools, food processing machinery, and related sectors will cut import dependence in critical industries, particularly where imports currently exceed 50 per cent."
According to the report, these make up around 1.8 per cent of GDP and account for nearly 12 per cent of the country's manufacturing output.