India's Private Capex Jumps 67% To Rs 7.7 Lakh Crore, Signals Investment Revival: CII

(MENAFN- KNN India) New Delhi, May 11 (KNN) India's private capital expenditure rose sharply by 67 percent year-on-year to Rs 7.7 lakh crore in September 2025, compared with Rs 4.6 lakh crore in the same period last year, signalling a strong revival in the investment cycle, according to the Confederation of Indian Industry (CII).

Manufacturing Leads Private Capex Growth

The surge was largely driven by the manufacturing sector, which accounted for nearly half of the total private capex at Rs 3.8 lakh crore, led by investments in metals, automobiles and chemicals, reported the Economic Times.

The services sector contributed Rs 3.1 lakh crore, or nearly 40 percent of the total, supported by strong investments in trading, communications and IT/ITeS. The analysis was based on data from nearly 1,200 companies tracked through the Centre for Monitoring Indian Economy (CMIE) Prowess database.

Calling the growth a strong indicator of economic momentum, CII Director General Chandrajit Banerjee said the sharp rise in private investment reflects a decisive turnaround in India's investment cycle.

CII Suggests Five-Point Plan To Sustain Momentum

To sustain momentum amid the ongoing West Asia crisis, CII proposed a five-point agenda for industry and policymakers.

These include frontloading FY27 investments in manufacturing, energy transition and digital infrastructure, ensuring faster payments to MSMEs through a voluntary 45-day payment commitment by large companies, and expanding participation under the Prime Minister's Internship Scheme.

The industry body also urged companies to adopt voluntary price restraint on essential inputs and target a 3-5 percent reduction in fuel and power consumption over the next two quarters through efficiency measures such as logistics optimisation, fleet electrification and greater renewable energy adoption.

Additionally, CII recommended a phased rollback of the Rs 10 per litre excise duty cut on petrol and diesel over the next six to nine months as crude oil prices stabilise.

Banerjee said the focus now should be on converting investment momentum into large-scale capacity creation, jobs, exports and value addition.

(KNN Bureau)

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