logo
Govt keeps tabs on capex as private investment lags

Govt keeps tabs on capex as private investment lags

Time of India2 days ago
Representational Image
NEW DELHI: Govt is keeping a close watch on capex as private investment remains weak, some of which may be on account of the global uncertainty induced by the US President Donald Trump's tariff regime.
During April-May, Centre's capital expenditure has been higher with ministries and departments spending 20% of their allocation for the year, compared with 13% in the first two months of the last fiscal year. Over the last five years, capex by the Centre has been a key policy tool to boost investment in the economy with the expectation that the multiplier effect will generate demand for inputs and create jobs and spur private investment.
The private sector has, however, largely watched from the sidelines barring sectors such as cement and steel where companies are lining up investment to meet the demand created by public investment in roads & railways. There has been heightened activity in sectors such as electronics, induced by schemes such as PLI.
But overall capacity utilisation is not seen at levels where companies would ramp up investment to set up new production lines.
In sectors such as automobiles and energy, the shift towards greener technologies is resulting in some investments being held up, industry sources said. While acknowledging the weak private investment, govt sources said efforts are being made to understand the measures that may be needed to boost activity.
Further, the sources said, some of the central projects may not have more absorptive capacity to step up capex and govt may explore newer segments of the economy to divert more public investment.
These could include spaces such as urban infrastructure with the finance ministry and other wings of govt expected to hold discussions in the coming months.
Given the needs of the economy and the growth expected in coming years, the focus on capex is going to remain, with private sector expected to take the baton sooner or later.
For the current fiscal year, the Centre has budgeted for capex of Rs 11.4 lakh crore of which nearly half is allocated to roads and railways.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Colgate Palmolive India Q1 results: Net profit down 11.9% as sales drop
Colgate Palmolive India Q1 results: Net profit down 11.9% as sales drop

Business Standard

time6 minutes ago

  • Business Standard

Colgate Palmolive India Q1 results: Net profit down 11.9% as sales drop

Colgate Palmolive India's Q1 net profit fell 11.9%, with revenue dropping 4.2%, driven by weak urban demand and heightened competition The oral care major saw its revenue fall to Rs 1,434.1 crore, down 4.2 per cent compared to the same period last year, with its net profit standing at Rs 320.6 crore. BS Reporter Mumbai Colgate Palmolive India saw its net profit drop 11.9 per cent in the quarter ended June, on the back of weak urban demand, a high base, and elevated competitive intensity. The oral care major saw its revenue fall to Rs 1,434.1 crore, down 4.2 per cent compared to the same period last year, with its net profit standing at Rs 320.6 crore. In its earnings release, Prabha Narasimhan, Managing Director & Chief Executive Officer of Colgate-Palmolive (India), said, 'Our Q1 results reflect persistent headwinds from tough operating conditions on account of subdued urban demand and elevated competition intensity. The current quarter's performance is also influenced by cycling a high base from the previous year; net sales grew at a 12 per cent compound annual growth rate (CAGR) in the base year same period (Q1 FY23-Q1 FY25).' She also mentioned that the company continued to work towards executing its strategic priorities. 'We have made good strides in category premiumisation, with our premium portfolio delivering strong revenue growth. We also prioritised brand investment, leveraging our healthy profit margins. We expect to navigate the current challenges and anticipate a gradual recovery in the back half of the year,' she added.

Ministry of Skill Development rolls out SOAR programme to introduce AI learning in Classes 6 to 12
Ministry of Skill Development rolls out SOAR programme to introduce AI learning in Classes 6 to 12

Indian Express

time6 minutes ago

  • Indian Express

Ministry of Skill Development rolls out SOAR programme to introduce AI learning in Classes 6 to 12

The Minister of State for Skill Development and Entrepreneurship, Jayant Chaudhary, today launched SOAR (Skilling for AI Readiness), a national programme designed to embed AI awareness and foundational learning among school students from Classes 6 to 12. SOAR includes three progressive 15-hour modules for students titled AI to be Aware, AI to Acquire, and AI to Aspire, and a 45-hour module for teachers titled AI for Educators. Addressing an event held in New Delhi, Minister Jayant Chaudhary said, India aspires to build the world's largest network of young learners actively engaging with artificial intelligence (AI). This vision includes school students not just learning about AI but applying it in meaningful, real-world contexts. He further added this would represent a significant step towards building a tech-driven, future-ready India. He also emphasised the government's long-term vision under 'Viksit Bharat 2047' and reiterated that India's skilling journey is central to national development. The programme covers topics like AI basics, generative AI, ethical use of technology, cybersecurity, and career pathways. The MSDE also operationalised KaushalVerse, the new Digital Enterprise Portal by the National Council for Vocational Education and Training (NCVET). The platform aims to streamline the regulatory framework in vocational training and make skill-related services more efficient and accessible. Another major launch was India's first and the world's largest outcomes-based development impact bond for skilling and employment—Skill Impact Bond (SIB). Led by MSDE through the National Skill Development Corporation (NSDC), the SIB has mobilised $14.4 million and aims to link skilling efforts more directly with employment outcomes The event also saw the signing of several Memorandums of Understanding (MoUs) aimed at strengthening public-private and international partnerships in skill development. One of the major agreements was signed between MSDE and the Government of the French Republic, focusing on collaboration in vocational education, joint curriculum development, Centres of Excellence, and cross-country training models. The Indian Institute of Information Technology (IIIT) Una will train 120 candidates in Electrical Technician and Software Programming roles under PMKVY 4.0, focusing on deep-tech and IT-ITeS sectors. IIT Hyderabad will train 280 candidates in Sangareddy, Telangana, in Electronics, Hydrocarbon, and Capital Goods sectors for job roles like CNC Programmer and AI–ML Engineer. IIT Patna will train 1,440 candidates in Patna, Bihar, across sectors like agriculture, green jobs, and healthcare. Job roles include EV Service Technician, AR/VR Engineer, and Elderly Caretaker. NIT Agartala will deliver training for 370 candidates in West Tripura in areas such as Automotive IoT, Bamboo Work Artisan, and AI–Data Science. RRU will conduct training in Gandhinagar, Gujarat, for 240 candidates in job roles ranging from Yoga Wellness Trainer to Fire Safety Officer, combining digital and wellness-oriented skills. NSTI Mumbai signed an MoU with ICICI Foundation to support rural incubation and entrepreneurship through vocational training and project-based skilling. A series of Flexi MoUs were signed under the PMKVY institutional strengthening strategy with companies such as Dixon Technologies, Microsoft, and HCL, aimed at customising training in line with current industry requirements.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store