New Delhi, Jan. 31 -- India has been the fastest growing large economy in the world post the covid pandemic. This period has been marked by policy stability and macro-fiscal discipline - the fiscal deficit is expected to come down to under 4.9% in FY25 and the quality of deficit has improved. While revenue expenditure was contained and rationalized by the Union government, capital spending grew 27% and 28% in FY23 and FY24. However, private capex has not happened at the pace that was expected and the high growth in government capex has driven the overall economic growth.

Looking ahead, the government would need to continue to contain the fiscal deficit while also ensuring high growth of GDP. Higher levels of capex, especially private cap...