In March 2026, capital expenditure by large central public sector enterprises (CPSEs) and four major government entities, including the Railway Board and the National Highways Authority of India (NHAI), surged 62% year-on-year to ₹1.10 lakh crore (approximately $13.2 billion USD). This increase reflects the government's strategy to enhance public capital expenditure amid challenges posed by the ongoing West Asia conflict, which has impacted domestic private investments. For the fiscal year 2025-26, total capital spending reached ₹8.50 lakh crore, exceeding the initial target of ₹7.47 lakh crore and marking a 14% increase from the previous year’s spending of ₹8.07 lakh crore. The Railway Board led the expenditures with ₹2.49 lakh crore, slightly below its target, while the NHAI exceeded its goal significantly with ₹2.44 lakh crore spent. Major energy companies, including NTPC and Indian Oil Corporation, also performed well against their targets. Despite the positive spending trends, the finance ministry cautioned that ongoing geopolitical tensions could hinder projected economic growth, estimated at 7-7.4% for the next fiscal year.