India’s private capex likely grew by 66% from FY22 to FY25

Capital expenditure by private sector enterprises is expected to have grown by 66.3% to Rs 6.6 lakh crore in FY25 from Rs 3.9 lakh crore in FY22, according to a report released by the ministry of statistics and programme implementation (MoSPI) on Tuesday.It is likely that private capex reached its highest level in FY25 between FY22 and FY26.In FY26, private capex is expected to reach Rs 4.9 lakh crore, registering a growth of 23.9% from FY22.“The slightly lower intended capex for 2025-26, though still above 2023-24 levels, reflects cautious planning after a strong 2024-25,” the ministry said in a statement.The capex data is based on information provided by 2,172 enterprises for all five years.“Overall, the trend indicates growing corporate confidence and a judicious approach to investment amid improving economic certainty,” said MoSPI.In FY24, the capex was Rs 4.2 lakh crore.The survey, conducted from November 2024 to January 2025, covered 5,380 active enterprises registered with the ministry of corporate affairs (MCA).It covered manufacturing enterprises with an annual turnover of Rs 400 crore and above, trade enterprises with an annual turnover of Rs 300 crore or more, and others with over Rs 100 crore turnover.Manufacturing is projected to have incurred the highest capital expenditure at 43.8%, followed by information and communication activities (15.6%) and transportation & storage (14%).Nearly half of private corporate sector enterprises undertook capital expenditure in FY25 for income generation, according to the Forward-Looking Survey on Private Sector CAPEX Investment Intentions.Another 30.1% directed their investments towards upgradation, while 2.8% on diversification.“Despite challenges like weak demand, geopolitical tensions and high borrowing costs, about 30% of firms plan to invest in upgradation in 2024-25, supporting the sharp increase in capex for that year,” the ministry said.While Rs 102.7 crore capex was proposed by each enterprise in FY22, the actual expenditure was Rs 109.3 crore, leading to a realisation ratio of 106.4%. A similar trend was observed in FY23, with a ratio of 111.9%.However, in FY24, the ratio fell below 100% as Rs 107.6 crore was spent compared to Rs 107.9 crore planned.The average gross fixed asset per enterprise rose by 32.7% to Rs 4,183.3 crore in FY24 from Rs 3,151.9 crore in FY22.The next capex survey is likely to be conducted from October to December 2025, the ministry noted.