India’s private capex likely rose 66% between FY22 and FY25 to Rs 6.56 lakh cr, likely to taper in FY26

"Uncertainties stemming from global developments constitute a key risk for the growth outlook for FY26. More than trade, the perception of prolonged uncertainty may cause the private sector to put its capital formation plans on hold," the finance ministry noted.

The capex data is based on information from 2,172 enterprises, which submitted capex data for full five years.

The gross fixed assets per enterprise rose to Rs 4,183.3 crore in FY24 from Rs 3,152 crore in FY22, as per the survey with electricity, gas reporting highest GFA, followed by manufacturing.

“The highest GFA per enterprise, exceeding Rs 14,000 crore, was observed in the industry category ‘Electricity, Gas, Steam, and Air Conditioning Supply’, followed by ‘Manufacturing” enterprises (₹7,000 crore to ₹10,000 crore). Enterprises principally engaged in manufacturing activities accounted for more than 65% of the total Gross fixed asset in private corporate sector over the past three years from 2021-22 to 2023-24 followed by enterprises engaged in ‘Electricity, Gas, Steam, and Air Conditioning Supply’ (8%-10%),” MoSPI said.

Who is spending on capex in 2024-25?

Data released by the ministry shows that the maximum spending was by manufacturing enterprises, which accounted for 48 percent, followed by information and communication at 15.6 percent.

Over half of this was spent on machinery and equipment, with purchase of dwelling and structures accounting for a 9.7 percent share.

Nearly half of the enterprises were looking at capex spend from income generation purposes, while upgradation was a motive for 30 percent enterprises.

The capex survey to be conducted annually covers manufacturing firms with a turnover of Rs 400 crore or more, trade enterprises with over Rs 300 crore turnover and other firms with over Rs 100 crore turnover.

The total sample size of survey was 5,380 enterprises.