Corporate India to double capex to $850 billion over the next five years

Corporate India is embarking on an ambitious investment drive, with capital expenditure expected to double to as much as $850 billion over the next five years, according to areport by S&P Global Ratings.

- BY S VENKAT NARAYAN

Indian power, electricity transmission lines, airlines, and green hydrogen sectors will spearhead the spending spree, the report said.

Driven by strong balance sheets, robust operating cash flows, and favourable government policy, Indian companies are aiming to scale up operations in what could be a defining expansion phase.

The top 100 listed companies, with a combined revenue of $1 trillion and $150 billion in EBITDA in fiscal 2025, are expected to fund most of the investment internally, keeping leverage in check, the report said. Unlisted renewable energy and airline companies with large capex plans were also considered by the firm in preparing the report.

"Companies are investing to capture growth, supported by macro tailwinds and deeper domestic funding markets," S&P analysts wrote. "Execution will be key to avoiding balance sheet slippage."

The power and transmission sector will account for roughly $300 billion in new investment—more than a third of the total projected capex. Renewable energy projects and grid infrastructure are expected to dominate the agenda as India pursues its 500 GW renewable capacity target by 2030.