Numerous initiatives introduced by the federal government to push up non-public investments appear to have met with some success with the supposed capital expenditure by corporations in 2024-25 seen to have grown by 55.5% to Rs 6.56 lakh crore from the precise capex of Rs 4.22 lakh crore in FY24.
Nevertheless, turning extra cautious, the supposed capex plans of corporations dropped by 25.5% to Rs 4.88 lakh crore in FY26. However total, combination capex has made a restoration and elevated by 66.3% over the four-year interval from 2021-22 when it was at Rs 3.94 lakh crore.
These are a few of the key findings of the inaugural version of the Ahead-Wanting Survey on Non-public Sector capex Funding Intentions undertaken by the Nationwide Statistical Workplace throughout November 2024 to January 2025.
“Regardless of challenges like weak demand, geopolitical tensions, and excessive borrowing prices, about 30% of corporations plan to spend money on upgradation in 2024–25, supporting the sharp enhance in capex for that 12 months. The marginally decrease supposed CAPEX for 2025–26, although nonetheless above 2023–24 ranges, displays cautious planning after a powerful 2024–25,” stated an official assertion by MOSPI on Tuesday.
Total, the pattern signifies rising company confidence and a even handed method to funding amid bettering financial certainty, it additional stated.
A complete of two,172 enterprises submitted full data for all 5 years of the reference interval, forming a set panel. Out of the three,064 responding enterprises, 2,172 reported their Capex intentions for 2025–26. “The info signifies a cautious method by respondents in declaring their capital expenditure plans. Subsequently, the Capex information for 2025–26 needs to be interpreted with warning, contemplating the conservative method and apprehension proven by the responding enterprises in reporting these figures,” underlined the ministry.
In FY25, the estimated provisional capital expenditure per enterprise for buying new property in 2024–25 stands at Rs 172.2 crore, the survey discovered. Among the many sectors, manufacturing enterprises account for the biggest share at 43.8%, adopted by these in ‘data and communication actions’ (15.6%) and ‘transportation and storage actions’ (14%).
The technique of 40.3% of enterprises is to undertake capex on core property throughout 2024–25, adopted by 28.4% to spend money on worth addition to current property, it additional revealed.
The following spherical of the capex survey is predicted to be performed throughout October to December 2025.
Enterprise the inaugural survey was not a straightforward activity. “On this inaugural version of the survey, business participation diversified, with an total response price of 58.3% (58.6% within the census sector and 57.2% within the pattern sector). Respondents appeared cautious in disclosing CAPEX plans, typically pending administration approvals,” the ministry stated, including that the findings could also be seen as indicative and topic to refinement in future iterations.
The ministry additional elaborated that notices have been issued to chose enterprises, explaining the survey’s goals and assuring confidentiality. Nevertheless, some enterprises questioned the legitimacy of notices containing portal credentials, resulting in a number of cyber danger considerations.
Explaining portal utilization and submission procedures over the cellphone was difficult, the ministry stated, including that information evaluation revealed points resembling incorrect unit entries and non-responses to follow-up queries. Enterprises additionally confronted difficulties in deciding on right NIC codes and estimating future investments when official information was unavailable.
“Whereas the response price and outcomes have been typically promising, this preliminary spherical of the survey will be thought-about as an experimental part, offering precious insights to refine the questionnaire, methodology, estimation processes, and total implementation,” it underlined.
