Private sector capex grew nearly 7% from FY21 to FY24

New Delhi: Capital expenditure by private companies grew nearly 7% from FY21 to FY24, reaching ₹4.22 trillion, the ministry of statistics and programme implementation (MoSPI) said on Tuesday.

The intended capex is projected to rise further to ₹6.56 trillion in FY25 before easing to ₹4.89 trillion in FY26.

The estimates are based on MoSPI’s very first round of a forward-looking survey on “Private Sector Capex Investment Intentions”, which draws from data submitted by 2,172 of the 3,064 responding enterprises.

“Of the 3,064 respondents, 2,172 reported their capex intentions for 2025–26. The data indicates a cautious approach by companies in declaring their investment plans,” the ministry said.

It further noted that the FY26 projections should be viewed with caution, given the conservative stance and hesitancy among respondents in disclosing their capex plans.

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According to the survey, the average gross fixed assets (GFA) per enterprise in the private corporate sector, which stood at ₹3,151.9 crore in 2021–22, rose by 4% to ₹3,279.4 crore in 2022–23 and surged 27.5% to ₹4,183.3 crore in 2023–24.

Gross fixed assets represent the total original cost of all tangible, long-term assets, including property, plant, and equipment (PP&E), before depreciation.

The highest GFA per enterprise, exceeding ₹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), the survey said.

Enterprises principally engaged in manufacturing activities accounted for more than 65% of the total gross fixed assets in the private corporate sector between 2021-22 and 2023-24 followed by enterprises engaged in electricity, gas, steam, and air conditioning supply (8-10%), it added.

The estimated capex per enterprise for 2021–22, 2022–23, and 2023–24 were ₹109.2 crore, ₹148.8 crore, and ₹107.6 crore, with a provisional estimate of ₹172.2 crore for 2024–25.

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According to MoSPI, 40.3% of its surveyed enterprises plan to undertake capex on core assets in 2024–25, followed by 28.4% intending to invest in value addition to existing assets.

"The survey estimates indicate that nearly 49.6% of private corporate sector enterprises undertook capex in 2024–25 primarily for income generation," it said.

"An additional 30.1% directed their investments toward upgradation, while around 2.8% focused on diversification. The remaining 17.5% of enterprises reported using their Capex for other reasons," it added.

MoSPI classifies enterprises into three categories—manufacturing with a turnover of ₹400 crore or more, trade with ₹300 crore or more, and others with ₹100 crore or more—resulting in a final survey frame of 16,025 enterprises.

"As this is the first round of the survey, the findings may be seen as indicative and subject to refinement in future iterations," the MoSPI survey said.

"It is also important to note that the results reflect responses from larger enterprises above specified turnover thresholds and may not represent the entire private corporate sector," it added.

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