Story perspectives

India’s $800B Capex Push Raises Investment Rate to 37.5%

5/1/2026

Summary

Story summary

India’s $800 billion capital spending projection led Morgan Stanley to raise its investment-rate forecast to 37.5 % of GDP by FY2030, from 36.5 %.
About 60 % of capex will go to data centres and defence, with defence spending rising from 2 % to 2.5 % of GDP by FY2031.
The energy plan adds Strategic Petroleum Reserve capacity, coal gasification and nuclear projects and expects Gulf-linked remittances, 38 % of inflows, to stay a support despite volatility.

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Story summary

India’s $800 billion capital spending projection led Morgan Stanley to raise its investment-rate forecast to 37.5 % of GDP by FY2030, from 36.5 %.
About 60 % of capex will go to data centres and defence, with defence spending rising from 2 % to 2.5 % of GDP by FY2031.
The energy plan adds Strategic Petroleum Reserve capacity, coal gasification and nuclear projects and expects Gulf-linked remittances, 38 % of inflows, to stay a support despite volatility.