FY26 Private Capex Likely Up 21.5%

Capital investment by the private sector is likely to rise 21.5 percent to Rs 2.67 lakh crore in 2025-26 aided by robust macroeconomic fundamentals, and a 100-bps policy rate cut, according to an RBI article.

- TDG NETWORK

Despite global uncertainties, Indian firms entered the 2025-26 fiscal year with healthier balance sheets, higher cash buffer, improved profitability, and greater access to diversified funding sources, said the article 'Private Corporate Investment: Growth in 2024-25 and Outlook for 2025-26' published in the Reserve Bank of India's (RBI's) August bulletin.

The continued policy push for infrastructure, sustained disinflation, combined with lower interest rates, easy liquidity conditions, and rising capacity utilisation, is fostering an environment conducive to private investment, it said.

Drawing on data related to the phasing of capital expenditure (capex) plans announced by private corporates, the article assesses their investment intentions and provides insights into the near-term outlook.