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Private Capex Falls to 3-Year Low of 11.2% in FY24

March 06, 2025

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The New Indian Express Tadepalligudem

DESPITE the launch of the various production linked incentive (PLI) schemes and the other government push for private sector investments, the private capital expenditure (capex) fell to a three-year low of 11.2% in FY24, which is lower than the pre-Covid average of 11.8% in the past four years, says a report.

- ENS ECONOMIC BUREAU @ Mumbai

An analysis of the institution-wise investment data for FY24 reveals private sector investments is lower than the pre-Covid average of 11.8% between FY2016-20, indicating weak investment sentiments for the private sector, India Ratings said in a note on Wednesday.

Paras Jasrai, a senior analyst & economist with the agency, believes private sector investments are likely to fall to below 11% of GDP in FY25, based on the trends from the latest national accounts data and company filings.

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