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After an estimated 55.5 per cent year-on-year increase to Rs 6.56 lakh crore in the intended capital expenditure or capex for financial year 2024-25, private sector enterprises are likely to see a 25.5 per cent drop in their capex intentions for the ongoing financial year 2025-26 to Rs 4.89 lakh crore, the inaugural ‘Forward-Looking Survey on Private Sector Capex Investment Intentions’ released by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday showed.
Despite challenges like weak demand, geopolitical tensions, and high borrowing costs, about 30 per cent of firms planned to invest in upgradation in 2024-25, the survey said. The intended capex for 2025-26 is seen lower from 2024-25 and 2022-23 levels, but above 2023-24 and 2021-22 levels. “This reflects cautious planning after a strong 2024-25. Overall, the trend indicates growing corporate confidence and a judicious approach to investment amid improving economic certainty,” the Ministry said.
Capex tends to rise when enterprises pursue growth strategies rather than maintain current operations, it said. Overall, there was an increase of 66.3 per cent in aggregate capex over the four-year period from 2021-22 to 2024-25, with the highest capex seen in 2024-25 at Rs 6.56 lakh crore.
As per the NSO, the survey — conducted between November 2024 and January 2025 — may be seen as indicative and subject to refinement in future iterations. The results reflect responses from larger enterprises above specified turnover thresholds and may not represent the entire private corporate sector, it said. The sample size for the survey was of 5,380 enterprises. A total of 2,172 enterprises submitted complete information for all five years of the reference period, showing an overall 23.9 per cent rise in aggregate capex during 2021-22 to 2025-26 for these enterprises.
The estimated provisional capital expenditure per enterprise for purchasing new assets in 2024-25 is Rs 172.2 crore. Among the sectors, manufacturing enterprises accounted for the largest share at 43.8 per cent, followed by those in ‘Information and Communication Activities’ (15.6 per cent) and ‘Transportation and Storage Activities’ (14 per cent).
Around 49.6 per cent of private corporate sector enterprises undertook capex in 2024-25 primarily for income generation. An additional 30.1 per cent directed their investments toward upgradation, while around 2.8 per cent on diversification.
Nearly 53.1 per cent of the total capital expenditure provisionally incurred in the year 2024-25 was for purchasing machinery & equipment. The amount allocated for ‘capital work in progress’ (22 per cent) and purchasing ‘dwellings, other buildings and structures’ (9.7 per cent) had the next highest share of allocation.
The average Gross Fixed Asset (GFA) per enterprise in the private corporate sector was estimated at Rs 3,151.9 crore in 2021-22. It rose by 4 per cent to Rs 3,279.4 crore in 2022-23, and further by 27.5 per cent to Rs 4,183.3 crore in 2023-24. The highest GFA per enterprise, exceeding Rs 14,000 crore, was seen in the industry category ‘Electricity, Gas, Steam, and Air Conditioning Supply’, followed by ‘Manufacturing” enterprises (Rs 7,000-10,000 crore).
Out of the 3,064 responding enterprises, 2,172 reported their capex intentions for 2025-26. “The data indicates a cautious approach by respondents in declaring their capital expenditure plans. Therefore, the capex data for 2025-26 should be interpreted with caution, considering the conservative approach and apprehension shown by the responding enterprises in reporting these figures,” the Ministry said.
