Forward-Looking Survey on Private Sector CAPEX Investment Intentions
The Ministry of Statistics and Programme Implementation (MoSPI) has released the inaugural “Forward-Looking Survey on Private Sector CAPEX Investment Intentions”. This survey provides insights into capital expenditure (capex), which involves spending towards creating long-term productive assets in the economy.
Importance of CAPEX
- Economic Growth: Capex is crucial for expanding production capacity, accelerating economic growth, supporting job creation, and enhancing labor productivity.
- Development Goals: For a developing economy like India, high growth rate in capex is key to becoming a prosperous nation and transitioning to a developed country.
Survey Details
- The survey was conducted between November 2024 and January 2025.
- It aimed to estimate capex trends of private corporate sector enterprises for five years: past three financial years (2021-22, 2022-23, 2023-24), current year (2024-25), and the upcoming year (2025-26).
- Out of 3,064 responding enterprises, 2,172 reported their capex data for the full five-year period.
- Despite being conducted under the Collection of Statistics Act, 2008, concerns about legitimacy and cyber-risks led to data-sharing reservations among companies.
Findings and Insights
- The survey revealed sharp fluctuations in private capex, ranging from Rs 3.9 trillion in FY22 to Rs 6.6 trillion in FY25, with significant year-on-year variations.
- Between FY22 and FY25, capex grew by 66%, but when including FY26, growth fell to 23%.
- The data suggests that private sector capex has not increased rapidly enough.
Government CAPEX and Initiatives
- The Union government’s capex grew by 230% between FY21 and FY25.
- Prime Minister Narendra Modi’s government is attempting to incentivize private sector capex to facilitate economic transition.
- Mapping private sector capex is a positive step for informed policymaking and corporate decision-making in the future.