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Informist, Monday, Mar. 23, 2026

 

--MoSPI: Survey shows FY26 pvt capex seen INR 6.11 tln vs INR 6.00 tln FY25 

--CONTEXT: Statistics min releases findings of private sector capex survey 

--MoSPI: Survey shows FY27 pvt capex seen INR 6.114 tln vs INR 6.112 tln FY26 

 

NEW DELHI – Capital expenditure by private-sector Indian companies rose marginally in 2025-26 (Apr-Mar) and is expected to remain steady in FY27, as per the capital expenditure survey released by the Ministry of Statistics and Programme Implementation Monday. According to the survey's findings, the intended capital expenditure of private-sector companies is estimated at INR 6.114 trillion in FY27, a tad higher than INR 6.112 trillion in FY26.

 

Private-sector companies invested INR 6.001 trillion for capital formation in FY25, the survey results showed. "Despite the typically conservative nature of forward-looking estimates, the results indicate a moderate increase in aggregate CAPEX (unweighted) over this period for the panel of enterprises," the ministry said in a release. "It may be noted that enterprises generally adopt a cautious approach while reporting data on future investment intentions." 

 

The intended capital expenditure of INR 6.11 trillion for FY26 is sharply higher than the INR 4.89 trillion estimated by the maiden survey released in April 2025. For FY25, the actual private investment of INR 6.00 trillion is lower than the INR 6.56 trillion estimated in last year's survey. 

 

The survey, conducted during Oct-Dec, shows that capital expenditure by the private sector is much lower than the government's investments. The government has set a capital expenditure target of INR 12.22 trillion for FY27, while the revised Budget target for FY26 was INR 10.96 trillion. In FY25, the government had spent INR 10.52 trillion on capital investments.

 

Private investment has lagged government capital spending for several years, especially after the COVID-10 pandemic. Policymakers have said in recent times that the economic environment is conducive to private investment picking up. Reserve Bank of India Governor Sanjay Malhotra in December said that growth in private investment will not be as high as it used to be.

 

"Capital intensity of our economy is actually decreasing because capital is becoming more productive, more efficient," Malhotra had said in an interview with a television news channel. "There is a shift of the composition of our economy towards the services sector, which is growing and which is less capital-intensive. So, growth in private investment will not be as high as it used to be earlier."

 

To be sure, the statistics ministry's capital expenditure survey is not entirely representative of the private sector as a whole. The survey included only manufacturing enterprises with an annual turnover of INR 4 billion or more, trade enterprises with a turnover of INR 3 billion or more, and other enterprises with an annual turnover of INR 1 billion or more.

 

Manufacturing, information and communication, and transportation were the top three sectors with the highest share in projected capital expenditure for FY27. Manufacturing had the largest share of projected investments at 44.7%, followed by information and communication activities at 15.6% and transportation and storage at 4.6%.

 

The provisional aggregate capital expenditure on the acquisition of new assets in FY26 was estimated at INR 11.44 trillion, applying multipliers to the survey data. For FY27, the aggregated capital expenditure intentions are estimated at INR 9.55 trillion.

 

According to the survey estimates, about 48.63% of enterprises in FY26 focused their investments on core assets, while 38.36% planned investments for value addition to existing assets. The survey estimates indicate that during FY26, about 60.13% of enterprises in the private corporate sector undertook capital expenditure primarily to generate income, while 42.12% reported investments to upgrade existing capacity.  End

 

Reported by Shubham Rana

Edited by Saji George Titus

 

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