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According to a recent survey conducted by the Ministry of Statistics and Programme Implementation, around 30% of private enterprises have planned to invest in upgrading their operations during FY25. The survey, covering over 3,000 enterprises, indicated a projected capital outlay of INR 6.6 lakh crore for the current fiscal year, with an expected investment of INR 4.9 lakh crore in FY26. The private sector overall capital expenditure has seen a 66.3% rise from FY22 to FY25, and the average gross fixed assets per enterprise have also steadily increased, reflecting a strong and strategic investment sentiment across industries.
Private enterprises in India are showing renewed confidence in the country’s economic trajectory, with nearly one-third of them indicating plans to invest in operational upgrades and expansions during the current financial year. A nationwide survey conducted by the Ministry of Statistics and Programme Implementation earlier this year revealed that 30% of private companies are gearing up for capital expenditure in FY25, highlighting a substantial increase in investment appetite. Advertisement
This is the ministry’s first attempt to compile a comprehensive estimate of capital investments by the private sector, and it comes at a time when businesses continue to battle macroeconomic pressures such as muted demand recovery, global geopolitical instability, and relatively high borrowing costs. Despite these hurdles, the survey suggests that capital investments by private firms for FY25 are likely to touch INR 6.6 lakh crore.
Looking further ahead, the investment intention remains robust though slightly moderated, with projections of INR 4.9 lakh crore for FY26. This still represents an upward trend when compared to the INR 4.2 lakh crore recorded in FY24. These figures mark a significant recovery in private capital spending and signal a continued focus on capacity building, technological enhancements, and infrastructure upgrades.
Out of the 3,064 companies surveyed between November 2024 and January 2025, 2,172 enterprises provided detailed data spanning five financial years. The survey findings pointed to a sharp 66.3% rise in aggregate capital expenditure between FY22 and FY25. This sustained growth reflects not just economic optimism but also strategic corporate planning to future-proof operations amid an evolving business environment.
Additionally, the data showed a clear increase in average gross fixed assets (GFA) per enterprise in the private sector. In FY22, the average GFA was INR 3,152 crore. This rose to INR 3,279 crore in FY23, marking a modest growth of 4%. However, FY24 witnessed a significant jump of 27.5%, with average GFA reaching INR 4,183 crore. This leap indicates that companies have been increasingly investing in physical infrastructure and long-term productive assets.
The encouraging trend comes at a time when the Indian government has been consistently pushing for higher private participation in infrastructure and industrial growth. The investment momentum also aligns with India's broader ambition to become a USD 5 trillion economy, where private sector dynamism is seen as crucial for job creation, innovation, and sustained GDP growth.
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