New Delhi, Nov. 6 -- India's policymakers are increasingly shifting focus from expanding the size of public capital expenditure (capex) to improving its quality and impact, including the use of data analytics and artificial intelligence (AI)-driven tools to monitor progress, two people aware of the matter said. The government is emphasizing project execution, transparency and measurable economic outcomes to ensure that investments translate into real gains such as durable assets, private-sector participation and productivity improvements rather than mere higher budgetary allocations, the people said. To this extent, greater due diligence and closer scrutiny of projects are now central to improving execution. "The emphasis is on transparency, timely completion and the multiplier effect of public spending, ensuring that each rupee of investment delivers measurable benefits," the first person said on the condition of anonymity. "The government plans to introduce a formal quality and impact assessment framework for all infrastructure projects before providing central capital support. Ministries seeking additional capital outlays from the finance ministry will now be required to present detailed plans on how the funds will create long-term, productivity-enhancing assets." Until now, allocations to infrastructure ministries have been largely based on their annual spending capacity, with limited qualitative evaluation of end-use. From the next financial year, budgetary capex support will be explicitly linked to projects that demonstrate clear economic, social or environmental returns, the person said. "The move is aimed at ensuring better targeting of public investment, aligning capital spending with national growth priorities and crowding in private investment," the person added. India's budgeted capex target stands at Rs.11.21 lakh crore compared with the estimate of Rs.11.11 lakh crore in the previous year. But the effective capital expenditure for FY26 is projected at Rs.15.48 lakh crore, against Rs.13.18 lakh crore in FY25, including core capital outlays, and grants and aid allocated to states. The Centre can increase spending beyond Rs.11.21 lakh crore for FY26. Officials indicated an additional Rs.20,000-30,000 crore could be spent if private investment remains sluggish amid global headwinds, Mint reported earlier. The Centre's capex stood at Rs.5.8 lakh crore in the April-September period, or 51.8% of the estimate for FY26, from Rs.4.15 lakh crore during the year-ago period, or 37.3% of the annual estimate. Artificial intelligence is set to play a critical role in this transition, the second person said, asking not to be identified. "The Centre plans to deploy data analytics and AI-driven tools for project appraisal, monitoring and performance tracking to minimize cost overruns and enhance transparency." The standing committee on finance has recommended establishing an indigenous, government-owned AI server to address privacy concerns, improve efficiency and harness data for informed decision-making, a proposal the government is examining. A spokesperson of the finance ministry didn't respond to emailed queries. "Given the complexities involved in large, capital-intensive infrastructure projects with long gestation periods and vast geographic reach, AI can emerge as a critical enabler in optimizing decisions across multiple factors and ensuring investments deliver maximum returns," said Rumki Majumdar, an economist with Deloitte India....