Indian Economy News

Private Capex Surges 67% to Rs. 7.70 lakh crore (US$ 81.48 billion)

Private sector capital expenditure (capex) announcements in India increased sharply by 67% year-on-year (YoY) to Rs. 7.70 lakh crore (US$ 81.48 billion) during FY26, reflecting improving business confidence, strong domestic demand and sustained infrastructure-led economic growth, according to the Confederation of Indian Industry (CII). The report highlighted that investments were primarily concentrated in sectors such as renewable energy, electronics, semiconductors, steel, chemicals, automobiles and data centres. Industry leaders noted that policy support, infrastructure expansion, production-linked incentives and rising consumption are encouraging companies to undertake large-scale capacity expansion and technology investments across sectors. The sharp increase in private capex also indicates strengthening industrial activity and improving long-term growth prospects for the Indian economy. 

According to CII, the investment pipeline has broadened significantly beyond traditional sectors, with growing participation from emerging industries such as green hydrogen, battery manufacturing, artificial intelligence (AI), electric vehicles (EVs) and digital infrastructure. The report also highlighted that stronger balance sheets, improving corporate profitability and increased credit availability have supported investment activity among private companies. Economists noted that rising private capex is essential for sustaining India’s medium-term economic growth, employment generation and manufacturing competitiveness. The continued momentum in investments aligns with the government’s broader objective of strengthening domestic manufacturing capabilities, boosting infrastructure development and positioning India as a global manufacturing and investment destination.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.