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

The New Indian Express Kottayam

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March 06, 2025

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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