The Indian government plans to increase its capital expenditure (capex) by 7 percent to approximately Rs 12 lakh crore for the upcoming budget, aiming to stimulate infrastructure growth amidst uneven private investment. This strategy leverages public spending to counter global uncertainties and dampen private investment sentiment. The proposed increase aligns with the government's ongoing use of infrastructure outlays to support domestic growth, building on a 10 percent capex increase in the FY26 budget.