India’s fiscal deficit reached 36.5% of FY26 target during H1 as capex outlays accelerated to sustain momentum in infrastructure build-out. The finance ministry expects multiplier benefits to offset near-term deficit optics, with private capex pick-up expected in energy transition, logistics modernisation, and industrial corridors. RBI repatriated 64 tons of gold between March and September to diversify reserve allocation toward strategic metals and de-risk concentration. Economists believe gold reserve expansion reinforces macro hedging while capex acceleration remains India’s primary long-term growth strategy catalyst.