Survey: Private sector capital expenditure will decrease in FY 2026, expected to decrease by 25% to ₹4.88 lakh crore
New Delhi| The proposed capital expenditure of the private corporate sector is expected to decline by about 25 per cent to Rs 4.88 lakh crore in FY 2025-26. In FY 2025, this amount was Rs 6.56 lakh crore. This information was given in a government survey report released on Tuesday.
According to a forward-looking survey involving private sector capital expenditure investments between November 2024 and January 2025 from the Ministry of Statistics and Programme Implementation, actual capital expenditure in the private corporate sector was Rs 3.94 lakh crore in 2021-22, Rs 5.72 lakh crore in 2022-23 and Rs 4.22 lakh crore in 2023-24.
The report reported that a total of 2,172 enterprises shared full information for all five years of said time. From which a panel was formed. The ministry said that the consolidated capital expenditure data obtained from this panel of enterprises serves as a reliable basis for analyzing capital expenditure trends over a period of five years.
Total capital expenditure (unweighted) showed an overall increase of 66.3 per cent over the four-year period from 2021-22 to 2024-25. Of the 3,064 enterprises that responded, 2,172 reported their capital expenditure intentions for 2025-26. Statistics show that respondents are being cautious in announcing their capital expenditure plans.
According to survey estimates, about 40.3 per cent of enterprises plan to make capital expenditure on core assets during 2024-25. Additionally, 28.4 per cent intend to invest in value addition to existing assets, while about 11.5 per cent focus on opportunistic assets and 2.7 per cent on debt strategies.
Survey projections show that approximately 49.6 per cent of private corporate sector enterprises will incur capital expenditure in 2024-25, mainly for income generation. An additional 30.1 per cent emphasized improving resources in their investments.
