India’s private sector has witnessed a significant surge in capital expenditure (capex), with investments rising by 66.3% between the financial years 2021–22 (FY22) and 2024–25 (FY25), according to a report released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday.
The data shows that private capex is estimated to have reached ₹6.6 lakh crore in FY25, up from ₹3.9 lakh crore in FY22. This marks the highest level of private investment recorded between FY22 and FY26.
For the upcoming financial year 2025–26 (FY26), the ministry expects capex to settle at around ₹4.9 lakh crore. While still higher than FY24’s ₹4.2 lakh crore, this projection indicates a 23.9% growth over FY22 figures, suggesting a more measured investment outlook following a robust FY25.
“The slightly lower intended capex for 2025–26, though still above 2023–24 levels, reflects cautious planning after a strong 2024–25,” the ministry stated.
The findings are based on data submitted by 2,172 private sector enterprises over a five-year period. The figures reflect increasing corporate confidence and a strategic investment approach amid greater economic clarity, MoSPI noted.
The forward-looking survey was conducted between November 2024 and January 2025. It covered 5,380 active firms registered with the Ministry of Corporate Affairs.
These included manufacturing companies with an annual turnover of ₹400 crore or more, trading firms exceeding ₹300 crore in turnover, and other entities with revenues above ₹100 crore.
Manufacturing emerged as the most investment-heavy sector, accounting for 43.8% of the total capex. This was followed by information and communication activities at 15.6%, and the transport and storage sector at 14%.
Nearly half of the enterprises surveyed reported undertaking capital expenditure in FY25 for the purpose of income generation. An additional 30.1% directed funds towards upgrading existing infrastructure, while 2.8% pursued diversification.
“Despite challenges such as sluggish demand, global geopolitical tensions and elevated borrowing costs, approximately 30% of enterprises plan to invest in upgrades in 2024–25, which supports the notable rise in capex for the year,” the ministry added.
In FY22, each enterprise proposed an average capex of ₹102.7 crore, with actual spending rising slightly to ₹109.3 crore — reflecting a realisation ratio of 106.4%.
A similar trend followed in FY23, where the ratio climbed to 111.9%. However, in FY24, actual spending dipped below planned levels, with ₹107.6 crore spent against a proposed ₹107.9 crore.
The average gross fixed assets per enterprise also saw an increase, rising by 32.7% from ₹3,151.9 crore in FY22 to ₹4,183.3 crore in FY24.
The ministry noted that the next capex survey is likely to be conducted between October and December 2025.
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