What is L&T CFO R Shankar Raman's prediction for the FY27 budget?

R Shankar Raman anticipates a 10% increase in capital expenditure outgo for the FY27 budget.

Why is capital expenditure important for India's future?

Increased capital expenditure is seen as vital for developing India's infrastructure, a key factor in achieving developed economy status by 2047.

What challenges does L&T face regarding project execution?

L&T, like the broader industry, faces challenges with manpower shortages and project execution delays.

Home / Business and Economy / L&T CFO Eyes 10% CapEx Hike for FY27 Budget

L&T CFO Eyes 10% CapEx Hike for FY27 Budget

4 Jan

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Summary

L&T CFO anticipates a 10% capital expenditure increase in the FY27 budget.
Government spending is seen as crucial for India's developed economy goal.
Manpower shortages and project execution delays remain significant challenges.

L&T CFO Eyes 10% CapEx Hike for FY27 Budget

R. Shankar Raman, the Chief Financial Officer of Larsen & Toubro, anticipates a significant 10% increase in capital expenditure outgo for the forthcoming FY27 budget. This projection underscores the government's commitment to infrastructure development, deemed essential for India's ambition to achieve developed economy status by 2047. Raman expressed confidence that ample liquidity in the financial system will support such substantial public investments, mitigating fears of resource crowding out.

The CFO highlighted the positive trajectory of large infrastructure projects and expressed hope for continued robust government allocation, similar to the over Rs 11 lakh crore commitment in FY26. He noted that while the government recommends qualitative pricing mechanisms, challenges persist with manpower shortages, impacting project execution. The pandemic has also influenced workforce mobility, making it harder to attract labor for distant projects.