Cautious Optimism: Private Sector Capex Trends for 2025-26

A recent survey predicts a 25% decline in private sector capital expenditure for 2025-26. However, the capex increased by 66.3% during 2021-2024. The data, albeit cautiously declared by enterprises, illustrates significant investment in manufacturing and infrastructure. Caution is advised in interpreting these figures.

In a recent government survey, the private corporate sector's capital expenditure (capex) is expected to dip by approximately 25% to Rs 4.88 lakh crore in the fiscal year 2025-26, down from Rs 6.56 lakh crore projected for FY25.

Conducted by the Ministry of Statistics & Programme Implementation, the survey covered capex investment intentions between November 2024 and January 2025. It showed a 66.3% surge in capex over the four-year span from 2021-22 to 2024-25. However, the data for 2025-26 should be treated with caution as companies exhibit hesitance in their expenditure plans.

The survey highlighted that enterprises primarily engaged in manufacturing accounted for over 65% of gross fixed assets from 2021-22 to 2023-24. Notably, capital expenditures for acquiring new assets in 2024-25 remain robust at Rs 172.2 crore per enterprise, with significant investment directed towards manufacturing and infrastructure sectors.

(With inputs from agencies.)