Raghav JhunjhunwalaAIR 4 · CSE 2025 · 167 wordsTheir whole copy
Opening · a figure
Budget 24-25 proclaims India to become Viksit Bharat by 2047, and it significantly gets affected by Cap Exp of Govt & Pvt sector.
Body · points
Potential of Capital Invst
(1) NIPFP study: Every ₹1 spent on Infra, etc. leads to [₹2.5-3] multiplier effect.
(2) Long Run Capacity from transport Infra, Storage, etc.
(3) Equity: Subsidies often face targeting issues; CapEx creates equal opportunities for all alike.
(4) Crowding-In: creates inducing envt for Pvt sector Investment.
(5) Employment generation, Balanced Regional Devt
Challenges in the regards
(1) High Debt Burden : Already [~80%] of GDP (C+S); Finance co. adviced to reduced it to [~60%].
(2) Freebies & subsidies culture squeeze out space.
(3) Timid response by Pvt. sector. Pvt. Investment yet to pick up after Covid Recovery [E.S. 24-25].
(4) Climate change → IMF : can shoot (Debt/GDP) > 100% by 2030.
Close · a summary
Govt has continuously provided greater allocation for CapEx since 2020 and today it reached [3.4% of GDP]. Such momentum will propel India to target of [$30 Tm. Economy].