Importance of Capital Expenditure in India's Economic Growth Public investment has become an important part of India’s present economic approach, with greater focus on developing infrastructure and supporting long-term growth. The government has significantly increased public capital spending, from around ₹2 lakh crore in FY 2014–15 to ₹12.2 lakh crore in FY 2026–27. Higher investment in infrastructure helps improve productive capacity, reduce transportation and logistics costs, and encourage greater participation from the private sector