New Delhi, Aug 31: Increased capital expenditure (capex) by the private sector and households lifted growth in capital investment to 7.5 per cent in Q1 FY25 (April-June) from 6.46 per cent in the preceding quarter, the data released by the National Statistical Office (NSO) on Friday showed.
Gross fixed capital formation (GFCF), which represents infrastructure investment, contributed 31.3 per cent to gross domestic product (GDP) in Q1FY25, as against 31.5 per cent in the preceding quarter.
An investment share above 30 per cent is considered important for driving economic growth.
The rise in capital investment during Q1 comes even as capital expenditure by the central government declined owing to the general elections.
The data sourced from the Controller General of Accounts (CGA) showed that the Centre’s capex in Q1 stood at Rs 1.8 trillion, nearly 33 per cent lower than the Rs 2.7 trillion during the corresponding period last year.
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