Varied initiatives introduced by the federal government to push up non-public investments appear to have met with some success with the meant capital expenditure by firms 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 meant capex plans of corporations dropped by 25.5% to Rs 4.88 lakh crore in FY26. However total, mixture 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 improve in capex for that 12 months. The marginally decrease meant CAPEX for 2025–26, although nonetheless above 2023–24 ranges, displays cautious planning after a powerful 2024–25,” mentioned an official assertion by MOSPI on Tuesday.
Total, the development signifies rising company confidence and a considered strategy to funding amid enhancing financial certainty, it additional mentioned.
A complete of two,172 enterprises submitted full data for all 5 years of the reference interval, forming a hard and fast panel. Out of the three,064 responding enterprises, 2,172 reported their Capex intentions for 2025–26. “The info signifies a cautious strategy by respondents in declaring their capital expenditure plans. Due to this fact, the Capex information for 2025–26 ought to be interpreted with warning, contemplating the conservative strategy 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 present property, it additional revealed.
The subsequent spherical of the capex survey is predicted to be performed throughout October to December 2025.
Endeavor the inaugural survey was not a straightforward activity. “On this inaugural version of the survey, trade participation diverse, with an total response charge 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 mentioned, including that the findings could also be seen as indicative and topic to refinement in future iterations.
The ministry additional elaborated that notices had been issued to chose enterprises, explaining the survey’s aims and assuring confidentiality. Nevertheless, some enterprises questioned the legitimacy of notices containing portal credentials, resulting in a number of cyber threat issues.
Explaining portal utilization and submission procedures over the cellphone was difficult, the ministry mentioned, including that information evaluation revealed points reminiscent of incorrect unit entries and non-responses to follow-up queries. Enterprises additionally confronted difficulties in choosing right NIC codes and estimating future investments when official information was unavailable.
“Whereas the response charge and outcomes had been usually promising, this preliminary spherical of the survey may be thought-about as an experimental section, offering priceless insights to refine the questionnaire, methodology, estimation processes, and total implementation,” it underlined.
