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India's Private Capex Surges 67% to ₹7.7 Lakh Crore in Strongest Revival

India's private capital expenditure surged 67% to Rs 7.7 lakh crore in September 2025, marking the strongest investment revival in over a decade. Manufacturing led the growth with Rs 3.8 lakh crore in investments, particularly in metals, automobiles, and chemicals. Complementary indicators like capacity utilisation (75.6%) and bank credit growth (14%) further strengthened the positive outlook. CII Director General Chandrajit Banerjee credited the government for the turnaround while unveiling a five-point industry action agenda.

Key Points: India Private Capex Jumps 67% to ₹7.7 Lakh Crore

  • Private capex jumps 67% to Rs 7.7 lakh crore in September 2025
  • Manufacturing accounts for Rs 3.8 lakh crore, led by metals, automobiles, chemicals
  • Capacity utilisation rises to 75.6%, new orders up 10.3% YoY
  • CII proposes five-point agenda including excise duty rollback and MSME payment guarantee
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India's private capex jumps 67 pc to Rs 7.7 lakh crore in strongest investment revival in over a decade

India's private capital expenditure jumps 67% to ₹7.7 lakh crore, marking the strongest investment revival in over a decade, led by manufacturing and services.

"The 67 per cent jump in private capex to Rs 7.7 lakh crore is, by some distance, the most important signal yet that India's investment cycle has decisively turned. - Chandrajit Banerjee"

New Delhi, May 10

India's private capital expenditure recorded a sharp 67 per cent jump to Rs 7.7 lakh crore in September 2025, signalling the strongest revival in the country's investment cycle in more than a decade, according to the Confederation of Indian Industry on Sunday.

The industry body said private capex had risen significantly from Rs 4.6 lakh crore in September 2024.

CII's analysis of nearly 1,200 companies from the CMIE Prowess database showed that manufacturing accounted for Rs 3.8 lakh crore, or nearly half of the total private investment, led by sectors such as metals, automobiles and chemicals. The services sector contributed Rs 3.1 lakh crore, driven by trading, communications and IT/ITeS industries.

Complementary economic indicators also pointed towards strengthening investment activity. Capacity utilisation among manufacturing firms rose to 75.6 per cent in the third quarter of FY26 from 74.3 per cent in the previous quarter, while new order books expanded 10.3 per cent year-on-year. Bank credit growth also accelerated sharply, averaging nearly 14 per cent in the second half of FY26 compared with around 10 per cent in the first half.

Chandrajit Banerjee said the sharp rise in private capex was the clearest sign yet that India's investment cycle had decisively turned.

"The 67 per cent jump in private capex to Rs 7.7 lakh crore is, by some distance, the most important signal yet that India's investment cycle has decisively turned," he said, adding that private enterprise was now committing capital at scale across sectors in a manner not seen in well over a decade.

Against the backdrop of the ongoing West Asia crisis and global economic uncertainty, CII also unveiled a five-point industry action agenda aimed at supporting economic stability and protecting growth momentum.

The proposals include a phased rollback of the central excise duty cut on petrol and diesel over six to nine months as crude oil prices stabilise, along with a voluntary industry-led energy conservation initiative targeting a 3 to 5 per cent reduction in fuel and power consumption over the next two quarters.

The industry chamber also proposed a voluntary 45-day MSME payment guarantee backed by the TReDS platform and supply-chain finance mechanisms to ease working capital stress for small businesses during the volatile global environment.

"The credit for this turnaround belongs squarely to the Government," Chandrajit Banerjee said, adding that industry must now translate the favourable policy environment into higher investments, jobs, exports and value addition.

- IANS

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Reader Comments

P
Priya S
Impressive numbers, but we need to see how much of this investment is actually creating employment. Many IT and services companies are using automation and AI. The real test will be in labour-intensive sectors like textiles and construction.
C
Chandrajit B
The excise duty rollback proposal on petrol and diesel is a sensible step if crude prices stabilise. Every rupee saved on fuel helps the common man and reduces inflationary pressure. But we must be careful not to rush it during global uncertainty.
A
Arun Y
67% jump is indeed strong, but let's not forget the base effect. Last year's ₹4.6 lakh crore was also a recovery from pandemic lows. The real story will be whether this momentum sustains for the next 2-3 years. Also, MSME payment guarantee is crucial - small businesses are the backbone.
M
Michael C
As someone tracking Indian markets from London, this is a significant turning point. The capacity utilisation at 75.6% and bank credit growth at 14% are textbook signs of a cyclical upturn. But the West Asia crisis remains a wild card for energy costs.
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Kavya N
Encouraging to see metals, auto, and chemicals leading the charge. These sectors have strong multiplier effects. But we need more investment in renewable energy and green tech. The energy conservation initiative mentioned is a good start, but should be mandatory, not voluntary.
S

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