Private sector capex is likely to witness 25% lower growth in the current financial year 2026, as per a survey conducted by the Ministry of Statistics.The private sector intends to spend ₹4.88 lakh crore as capex in the financial year 2026 compared to ₹6.56 lakh crore in the previous fiscal, a decline of 25%, the forward-looking survey on Private Sector Capex Investment Intention stated.
The ministry surveyed 3,064 enterprises between November 2024 and January 2025, of which 2,172 shared their capex plans for the financial year 2026.
The survey showed that 43% of the enterprises did not report their capex for FY26 as no capital expenditure is intended to be incurred. Against this, 32% of the enterprises intend to increase their capex.While 20% of the enterprises see no change in their capex plans from the previous year, 4% intend to lower their capital formation in FY26.Mining and quarrying, electricity, gas, and air conditioning supply, wholesale and retail trade and repair of motor vehicles and motorcycles sectors are among the biggest contributors to zero capital expenditure in the current financial year.Against this, the manufacturing, health and education sectors intend to increase their capex by over 50%.Despite the tepid outlook for the current fiscal, the same enterprises showed a 24% increase in investment since FY21 indicating long-term growth momentum, although the actual capital spend was lower in FY24, compared to FY23.The actual capex reported by the private corporate sector stood at ₹3.94 lakh crore in 2021-22, ₹5.72 lakh crore in 2022-23, and ₹4.22 lakh crore in 2023-24.The report also urged caution in interpreting the FY26 capex projections, noting that many companies have adopted a conservative stance in declaring their investment plans.Also Read: Finance Ministry warns of private capex stalling due to prolonged global uncertainties(Edited by : Shloka Badkar)
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