Morgan Stanley anticipates a slowdown in India's central government capital expenditure (capex) for the remainder of FY26, as spending was front-loaded in the first half. Approximately 58.7% of the budgeted Rs 11.21 lakh crore capex for FY26 was spent by November, reaching 3.4% of GDP. Roads and railways received about 55% of this spending. State government capex has remained relatively stable.