Private Capex Jumps 67% in September 2025, CII Data Shows

Private sector capital expenditure in India surged 67% year-on-year to ₹7.7 lakh crore in September 2025, according to data compiled by the Confederation of Indian Industry (CII), signaling a sharp rebound in investment momentum. The rise contrasts with recent statements from Chief Economic Advisor V. Anantha Nageswaran, who in early May 2026 criticized private firms for failing to reinvest post-pandemic profits, calling capital formation rates "disappointing."

CII’s director general, Chandrajit Banerjee, said manufacturing accounted for nearly ₹3.8 lakh crore of the outlay, led by metals, automobiles and chemicals, while services contributed ₹3.1 lakh crore, driven by trading, communications and IT/ITeS. He cited rising capacity utilization at 75.6%, expanding order books, and 14% bank credit growth in late FY26 as indicators of sustained private investment across sectors.

The CII urged Indian industry to support national economic resilience during the West Asia crisis through five measures: a phased rollback of the ₹10 per litre Central excise cut on fuel; a 3-5% reduction in energy use over the next two quarters; a voluntary 45-day MSME payment guarantee via TReDS and supply-chain finance; deeper import substitution; and front-loading of investments in manufacturing, energy transition and digital infrastructure.

CII also recommended that firms exercise price restraint on essential inputs and expand internship hiring under the PM Internship Scheme. Banerjee described the proposals as a concrete partnership offer from industry to the government amid global instability.

The Finance Ministry has not yet responded to CII’s recommendations, but officials are expected to review the latest capex data as part of broader fiscal planning. The next quarterly economic review, due in June 2026, will provide further insight into investment trends and policy adjustments.