Big push on infrastructure: Top 10 states by capital outlay over the last five years

Capital outlay is an indicator of government spending on creating long-term assets such as roads, railways, power plants, irrigation systems, schools, hospitals, and urban infrastructure. Unlike regular spending, capital outlay helps build productive capacity and supports economic growth over many years. In recent years, Indian states have sharply increased such spending, making them key drivers of infrastructure development.

RBI data shows a strong and steady rise in capital outlay by states and union territories over the past five years, highlighting a clear push towards infrastructure-led growth. Capital spending increased from Rs 4.14 lakh crore in FY21 to Rs 5.32 lakh crore in FY22 and Rs 5.99 lakh crore in FY23. The pace picked up sharply in FY24, with outlay jumping to Rs 8.68 lakh crore, reflecting higher allocations for roads, transport, power, and urban infrastructure. For FY25 (Budget Estimates), capital outlay rose further to Rs 9.18 lakh crore.

Within this rising trend, a few large states dominate capital spending over the last five years. Uttar Pradesh tops the list with a total capital outlay of Rs 5.18 lakh crore in the last five years from FY21 to FY25. The state has focused heavily on highways, expressways, urban development, and industrial corridors. This scale of investment shows a clear intent to improve basic infrastructure and attract private investment.

Maharashtra, with Rs 3.09 lakh crore, ranks second, supported by spending on metro rail projects, roads, ports, and urban infrastructure. Karnataka (Rs 2.55 lakh crore) has invested strongly in metro systems, roads, and digital and power infrastructure, while Madhya Pradesh (Rs 2.44 lakh crore) has shown focused on highways, irrigation projects, and energy capacity.

Other major contributors include Gujarat (Rs 2.25 lakh crore) and Tamil Nadu (Rs 2.00 lakh crore), both known for steady investment in industrial parks, ports, logistics, and urban infrastructure. Odisha, Bihar, Telangana, and Rajasthan, with capital outlays ranging from Rs 1.38 to 1.78 lakh crore, reflect growing investment capacity. This shift towards higher capital outlay strengthens infrastructure, supports job creation, and lays the foundation for sustained economic growth across states.