India Inc. to double capex to Rs. 72,72,600 crore (US$ 850 billion) over the next five years
- IBEF
- June 11, 2025
India Inc is set to double its capital expenditure to Rs. 72,72,600 crore (US$ 850 billion) over the next five years, led by sectors such as power transmission, airlines, and green hydrogen, according to S&P Global Ratings. The top 100 listed companies, with combined revenue of Rs. 85,56,000 crore (US$ 1 trillion) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rs. 12,83,400 crore (US$ 150 billion) in FY25, are expected to fund most of this capex internally. Firms are leveraging strong balance sheets, robust cash flows, and supportive government policies. Power and transmission will account for Rs. 25,66,800 crore (US$ 300 billion) of this outlay, with NTPC, Tata Power, and Power Grid Corporation leading the push. The Adani Group plans Rs. 1,71,120 crore (US$ 20 billion) in annual capex, while the Tata Group is allocating Rs. 10,26,720 crore (US$ 120 billion), largely towards aviation, semiconductors, and electronics.
Airlines will invest Rs. 6,41,700 crore – 8,55,600 crore (US$ 75–100 billion) in fleet expansion by 2035, with Indigo better positioned to absorb costs, while Air India and SpiceJet may face stress. Traditional sectors such as steel, cement, oil & gas, and auto will contribute Rs. 21,39,000 crore (US$ 250 billion), while emerging areas like green hydrogen and semiconductors may attract Rs. 4,27,800 – 8,55,600 crore (US$ 50–100 billion). Airports could see Rs. 2,99,460 crore (US$ 35 billion) in new investment. S&P noted that the reliance on debt will be lower than in past cycles, with banks, Non-Banking Financial Companies (NBFCs) like Power Finance Corporation (PFC) and REC, and a maturing bond market expected to provide funding. However, it cautioned about elevated credit risks in renewables, steel, and airports due to execution challenges and price volatility.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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