Capital expenditure by state governments during April–February points to a mixed but gradually improving investment cycle, with a handful of large states sustaining infrastructure spending even as others lag under fiscal pressure. Aggregate capital outlay by 18 major states rose 9.5% year-on-year to Rs 4.76 lakh crore in the first eleven months of 2025-26, a marked recovery from the negligible 0.2% growth recorded in the corresponding period last year. The pick-up suggests a renewed push towards asset creation, though the pace remains uneven across regions.