A Deutsche Bank report says that rural roads sector in India may continue driving the planned expenditure of the Union government in this fiscal year, which in the first five months rose 23 per cent and may help revive the the economy.
During April-August, the plan expenditure of the Centre was up 23 per cent compared with the year-ago period, primarily driven by the spending on rural roads, the report says.
The report said that growth in planned expenditure will be driven by the ministry of roads (rural roads) as well as by spending on irrigation and water under the social expenditure schemes, which suggests pre-election demand.
In August, on year-on-year basis, cement demand grew 6-8 per cent and coal supplies to power plants rose 17 per cent, driving power generation volume growth of 15 per cent.