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States Boost Efficiency: Capex Clustered in 3
22 Mar
Summary
- UP, Maharashtra, Gujarat claim 30% of national capex.
- Karnataka, Telangana lead capital efficiency over 100%.
- Top 10 states account for 67% of total capital expenditure.
Uttar Pradesh, Maharashtra, and Gujarat collectively accounted for nearly 30% of India's capital expenditure in FY2025. This concentration highlights ongoing investment patterns, particularly in large infrastructure projects across the northern region, including expressways and international airports. Simultaneously, states like Karnataka and Telangana are showcasing remarkable capital efficiency, with productive capital ratios exceeding 100% as of FY2024.
These efficiency leaders are generating more economic activity from their assets than their recorded investments suggest, potentially through strong private investment or improved capital utilization. Gujarat and Maharashtra maintained high stability, while other states saw significant ratio improvements. The top 10 states, though, still represent approximately 67% of total capital expenditure, underscoring persistent investment concentration despite broader efficiency gains.
