The private corporate sector's planned capital spending is expected to shrink by nearly 25% in 2025-26, falling to Rs 4.88 lakh crore from Rs 6.56 lakh crore in the current financial year, according to a government survey released on Tuesday.
The Forward-Looking Survey on Private Sector CAPEX Investment Intentions, conducted by the ministry of statistics and programme implementation (MoSPI) between November 2024 and January 2025, revealed a cautious outlook among enterprises regarding future investments. The study also reflected past figures, Rs 3.94 lakh crore in 2021-22, Rs 5.72 lakh crore in 2022-23, and Rs 4.22 lakh crore in 2023-24.
The report is based on data from 2,172 enterprises that consistently shared investment details over five years. Despite the projected fall for FY26, aggregate capex across the four-year period from 2021-22 to 2024-25 showed a 66.3% increase, and a 23.9% rise when FY25-26 intentions are factored in.
The average gross fixed assets (GFA) per enterprise rose steadily, from Rs 3,151.9 crore in 2021-22 to Rs 4,183.3 crore in 2023-24, with the electricity, gas, steam, and air conditioning sector showing the highest average at over Rs 14,000 crore, followed by manufacturing, where per-enterprise assets ranged from Rs 7,000 to Rs 10,000 crore.
Manufacturing companies accounted for over 65% of total GFAs during 2021-22 to 2023-24, while the utilities sector made up 8–10%. In 2024-25, manufacturing continues to dominate capital spending intentions, comprising 43.8% of the Rs 172.2 crore average capital expenditure per enterprise, followed by information and communication (15.6%) and transportation and storage (14%).
Machinery and equipment purchases made up over half, 53.1%, of the total provisional capex in 2024-25. Meanwhile, 40.3% of enterprises reported plans to invest in core assets, 28.4% in enhancing existing assets, and smaller proportions in opportunistic and debt-linked strategies.
The survey also revealed the motives behind capex: nearly half (49.6%) of the enterprises are investing primarily for income generation, while 30.1% are focused on technological upgrades. Only 2.8% cited diversification as their reason for investing.
The national statistical office (NSO) carried out this inaugural forward-looking capex survey, following a 2022-23 recommendation from the Parliamentary Standing Committee to improve the scope and depth of private sector investment data. Covering over 5,300 enterprises from both Census and sample sectors, the survey provides one of the most detailed pictures yet of India Inc.’s capital expenditure landscape.
The Forward-Looking Survey on Private Sector CAPEX Investment Intentions, conducted by the ministry of statistics and programme implementation (MoSPI) between November 2024 and January 2025, revealed a cautious outlook among enterprises regarding future investments. The study also reflected past figures, Rs 3.94 lakh crore in 2021-22, Rs 5.72 lakh crore in 2022-23, and Rs 4.22 lakh crore in 2023-24.
The report is based on data from 2,172 enterprises that consistently shared investment details over five years. Despite the projected fall for FY26, aggregate capex across the four-year period from 2021-22 to 2024-25 showed a 66.3% increase, and a 23.9% rise when FY25-26 intentions are factored in.
The average gross fixed assets (GFA) per enterprise rose steadily, from Rs 3,151.9 crore in 2021-22 to Rs 4,183.3 crore in 2023-24, with the electricity, gas, steam, and air conditioning sector showing the highest average at over Rs 14,000 crore, followed by manufacturing, where per-enterprise assets ranged from Rs 7,000 to Rs 10,000 crore.
Manufacturing companies accounted for over 65% of total GFAs during 2021-22 to 2023-24, while the utilities sector made up 8–10%. In 2024-25, manufacturing continues to dominate capital spending intentions, comprising 43.8% of the Rs 172.2 crore average capital expenditure per enterprise, followed by information and communication (15.6%) and transportation and storage (14%).
Machinery and equipment purchases made up over half, 53.1%, of the total provisional capex in 2024-25. Meanwhile, 40.3% of enterprises reported plans to invest in core assets, 28.4% in enhancing existing assets, and smaller proportions in opportunistic and debt-linked strategies.
The survey also revealed the motives behind capex: nearly half (49.6%) of the enterprises are investing primarily for income generation, while 30.1% are focused on technological upgrades. Only 2.8% cited diversification as their reason for investing.
The national statistical office (NSO) carried out this inaugural forward-looking capex survey, following a 2022-23 recommendation from the Parliamentary Standing Committee to improve the scope and depth of private sector investment data. Covering over 5,300 enterprises from both Census and sample sectors, the survey provides one of the most detailed pictures yet of India Inc.’s capital expenditure landscape.
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