The slightly lower intended capex for 2025–26, though still above 2023–24 levels, reflects cautious planning after a strong 2024–25
Capital Expenditure (capex) by the private sector over a four-year period ranging from 2021-22 to 2024-25 has shown an increase of over 66 per cent, finding of a forward-looking survey by Statistics Ministry showed. However, the survey also found that intended capex in current fiscal (2025-26) shows a decline of around 25 per cent.
Although the sample size was 5,380 enterprises, only a total of 2,172 enterprises submitted complete information for all five years of the reference period, forming a fixed panel on which the results are based.
The average Gross Fixed Asset (GFA) per enterprise in the private corporate sector was estimated at ₹3,151.9 crore in 2021–22 which increased by 4 per cent to ₹3,279.4 crores in 2022–23, and further grew by 27.5 per cent to reach ₹4,183.3 crore in 2023–24. 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).
Enterprises principally engaged in manufacturing activities accounted for more than 65 per cent of the total GFA in private corporate sector over the past three years from 2021-22 to 2023-24 followed by enterprises engaged in ‘Electricity, Gas, Steam, and Air Conditioning Supply’ (8-10 per cent).
In 2021–22, the estimated actual capex per enterprise was ₹109.3 crore, compared to the proposed value of ₹102.7 crore, resulting in a realisation ratio of over 106 per cent. A similar trend was observed in 2022–23, where the estimated value of actual capex per enterprise reached ₹148.8 crore against a proposed value of ₹133.3 crore, also yielding a realisation ratio exceeding 100 per cent.
However, for 2023–24, the realisation ratio stands at 99.7 per cent, with the estimated actual capex per enterprise at ₹107.6 and the proposed capex at ₹107.9. The estimated provisional capex per enterprise for acquiring new assets in 2024–25 stands at ₹172.2 crore. Among the sectors, manufacturing enterprises account 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).
Talking about the current fiscal, the survey said that out of the 3,064 responding enterprises, 2,172 reported their capex intentions. 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. However, the results show an overall increase of around 24 per cent in aggregate capex (unweighted) during 2021-22 to 2025-26 for this fixed panel.
The Ministry also said that capex tends to rise when enterprises pursue growth strategies rather than maintain current operations. 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, 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. Overall, “the trend indicates growing corporate confidence and a judicious approach to investment amid improving economic certainty,” it said.
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Published on April 30, 2025
