Private Capex
Private capex holding well in FY26 on demand boost from tax cuts, says CEA
This story was originally published at 17:45 IST on 7 November 2025
Register to read our real-time news.Informist, Friday, Nov. 7, 2025
--CEA: Private capex holding well in FY26
--CEA: Pvt capex holding well in FY26 on demand boost from tax cuts
--CONTEXT: CEA Nageswaran's comments at event in Mumbai
NEW DELHI – The capital expenditure by Indian corporates is holding well in the current financial year due to the boost to consumption demand from the tax cuts announced by the government, Chief Economic Adviser to the finance ministry V. Anantha Nageswaran said Friday. The government has slashed both direct and indirect taxes – income tax and Goods and Services Tax — in 2025-26 (Apr-Mar).
The income tax cut in the FY26 Budget and the GST rationalisation rolled out in September gave a significant boost to people's disposable income, Nageswaran said at State Bank of India's Banking and Economic Conclave in Mumbai. "Now, many of you may think this as the government focusing on the demand side of the economy, but both demand and supply are two sides of the same coin," Nageswaran said. "A demand boost is what gives visibility to the corporate sector to boost capital formation."
While the government has been trying to induce a multiplier effect on private investment through high public capital expenditure since FY20, it has also deployed the consumer boost strategy this year to spur private investment. As a supply-side measure, the government has more than tripled capital spending over the last five years to INR 11.21 trillion in FY26.
Despite global uncertainties, early indications suggest that private sector capital expenditure is holding up well in FY26, on top of an estimated strong capital formation growth in FY25, Nageswaran said. End
Reported by Krity Ambey and Anshul Choudhary
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
