Private capex jumps 67% to Rs 7.7 lakh crore, signals investment revival: CII

CII’s analysis of nearly 1,200 companies from the CMIE Prowess database showed private sector investment—measured through annual changes in net fixed assets and capital work in progress—rising sharply from Rs 4.6 lakh crore in September 2024 to Rs 7.7 lakh crore a year later.

Manufacturing accounted for nearly half the investment at Rs 3.8 lakh crore, led by metals, automobiles and chemicals, while services contributed Rs 3.1 lakh crore, driven by trading, communications and IT/ITeS sectors.

“The 67% jump in private capex to Rs 7.7 lakh crore is the most important signal yet that India’s investment cycle has decisively turned,” said CII Director General Chandrajit Banerjee. He said the scale and spread of investments across sectors were unlike anything seen in more than a decade.

Supporting indicators also pointed to strengthening corporate activity. Capacity utilisation in manufacturing rose to 75.6% in the third quarter of FY26 from 74.3% in the previous quarter, while order books expanded 10.3% year-on-year. Bank credit growth rebounded to nearly 14% in the second half of FY26 compared with around 10% in the first half.

Amid rising geopolitical uncertainties linked to the West Asia conflict, CII unveiled a five-point industry action agenda aimed at protecting growth momentum while easing pressure on government finances.

The proposals include a phased rollback of the Rs 10-per-litre excise duty cut on petrol and diesel over six to nine months as crude prices stabilise, a voluntary industry-wide commitment to reduce fuel and power consumption by 3-5%, and a 45-day payment guarantee for MSMEs backed by wider use of the Trade Receivables Discounting System (TReDS).

Industry has also proposed deeper import substitution and supply-chain diversification to reduce external vulnerabilities. In addition, companies have been urged to front-load FY27 investments in manufacturing, energy transition and digital infrastructure, while exercising voluntary price restraint on essential inputs and scaling up internship hiring under the PM Internship Scheme.

Banerjee said industry was willing to absorb part of the input cost pressures within corporate margins to support the economy during the current period of global stress. “This is industry’s way of saying that we will lean in, not pull back, at this defining moment for the Indian economy,” he said.

CII credited the revival in private investment to the government’s sustained public capital expenditure push and broader policy reforms. It cited measures such as the Production Linked Incentive schemes, PM Gati Shakti, Jan Vishwas 2.0, labour reforms, free trade agreements and the National Education Policy as key contributors to improving the business environment.