Various initiatives announced by the government to push up private investments seem to have met with some success with the intended capital expenditure by companies in 2024-25 seen to have grown by 55.5% to Rs 6.56 lakh crore from the actual capex of Rs 4.22 lakh crore in FY24.
However, turning more cautious, the intended capex plans of firms dropped by 25.5% to Rs 4.88 lakh crore in FY26. But overall, aggregate capex has made a recovery and increased by 66.3% over the four-year period from 2021-22 when it was at Rs 3.94 lakh crore.
These are some of the key findings of the inaugural edition of the Forward-Looking Survey on Private Sector capex Investment Intentions undertaken by the National Statistical Office during November 2024 to January 2025.
“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 slightly lower intended CAPEX for 2025–26, though still above 2023–24 levels, reflects cautious planning after a strong 2024–25,” said an official statement by MOSPI on Tuesday.
Overall, the trend indicates growing corporate confidence and a judicious approach to investment amid improving economic certainty, it further said.
A total of 2,172 enterprises submitted complete information for all five years of the reference period, forming a fixed panel. 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,” underlined the ministry.
In FY25, the estimated provisional capital expenditure per enterprise for acquiring new assets in 2024–25 stands at Rs 172.2 crore, the survey found. Among the sectors, manufacturing enterprises account for the largest share at 43.8%, followed by those in ‘information and communication activities’ (15.6%) and ‘transportation and storage activities’ (14%).
The strategy of 40.3% of enterprises is to undertake capex on core assets during 2024–25, followed by 28.4% to invest in value addition to existing assets, it further revealed.
The next round of the capex survey is expected to be conducted during October to December 2025.
Undertaking the inaugural survey was not an easy task. “In this inaugural edition of the survey, industry participation varied, with an overall response rate of 58.3% (58.6% in the census sector and 57.2% in the sample sector). Respondents appeared cautious in disclosing CAPEX plans, often pending management approvals,” the ministry said, adding that the findings may be seen as indicative and subject to refinement in future iterations.
The ministry further elaborated that notices were issued to selected enterprises, explaining the survey’s objectives and assuring confidentiality. However, some enterprises questioned the legitimacy of notices containing portal credentials, leading to multiple cyber risk concerns.
Explaining portal usage and submission procedures over the phone was challenging, the ministry said, adding that data analysis revealed issues such as incorrect unit entries and non-responses to follow-up queries. Enterprises also faced difficulties in selecting correct NIC codes and estimating future investments when official data was unavailable.
“While the response rate and results were generally promising, this initial round of the survey can be considered as an experimental phase, providing valuable insights to refine the questionnaire, methodology, estimation processes, and overall implementation,” it underlined.
