India's Private Corporate Sector Bullish on Capex Despite Global Uncertainties: Govt Survey

Despite challenges like weak demand, geopolitical tensions, and high borrowing costs, about 30 per cent of firms in the private corporate sector planned to invest in upgradation in FY 2024-25, supporting the sharp increase in capital expenditure (capex) last fiscal, a government survey showed on Tuesday.

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The slightly lower intended capex for FY2025-26, though still above the 2023-24 levels, reflects cautious planning after a strong 2024-25. Overall, the trend indicates growing corporate confidence and a judicious approach to investment amid improving economic certainty, according to the survey data released by the Ministry of Statistics.

According to survey estimates, nearly 40.3 per cent of enterprises plan to undertake capex on core assets during 2024-25. Additionally, 28.4 per cent intend to invest in value addition to existing assets, while around 11.5 per cent focus on opportunistic assets, and 2.7 per cent on debt strategies.