New Delhi, June 23 -- Capital expenditure by 26 Indian states is projected to rise significantly to Rs 10.2 trillion in FY26, up from Rs 8.7 trillion in FY25, according to a recent study by Bank of Baroda.

The increase reflects a growing emphasis on infrastructure-led development at the sub-national level, with five states expected to contribute nearly half of the total outlay.

Uttar Pradesh is set to lead with a 16.3 per cent share of the total capex, followed by Gujarat (9.4 per cent), Maharashtra (8.3 per cent), Madhya Pradesh (8.1 per cent), and Karnataka (6.7 per cent).

These five states are anticipated to remain at the forefront of capital investment in FY26. In comparison, FY25's top contributors included Uttar Pradesh (16.9 per...