Capital expenditure done right will result in multiplier effect: FICCI chairman

CNBC-TV18’s Timsy Jaipuria spoke with FICCI President - Sanjiv Mehta from the sidelines of the special interaction on Union Budget organised by FICCI and he spoke on how he sees the economy getting a consumption boost post budget.

Mehta said, “A capital expenditure spent rightly, would result in a multiplier effect and what we all seek is virtuous spiral where the spend would result in demand for many products, which in turn will result in enhanced capacity utilisation, which will result in more private sector capex, which in turn will create more jobs, more demand, and the virtuous spiral will start. I think that is all what we are seeking.”

He added, “I believe what is important is not only to spend the budgeted money, but also front-loaded, so that we can get the benefit and the stress on the consumption will ease that is what our expectation is.”