What’s this capex multiplier the Finance Minister has been talking about?

One of the highlights in Budget 2022 was the increase in capital expenditure on part of the government. In an interview with Network18, Finance Minister Nirmala Sitharaman emphasised that investments in infrastructure will set off a virtuous cycle by crowding in private investment and trigger the multiplier effect. This explainer discusses the multiplier effect and its importance.

I explain the concept of capex multiplier.

 

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