Moderate rise in private capex expected for FY27: Govt survey

New Delhi: Private corporate capital expenditure is expected to rise 1.9% to Rs 6.1 lakh crore in FY27 from Rs 6 lakh crore incurred in FY25, but grow just 0.04% over the FY26 estimate, according to a report released by the statistics ministry on Monday.

Despite typically conservative estimates, the data indicates a moderate rise in aggregate capex, reflecting firms’ cautious approach to future investment reporting, the ministry said.

The aggregated unweighted (without any multiplier) data is based on information provided by 3,819 enterprises for all three years.


Manufacturing is expected to account for the largest share of capex, with about 37% of enterprises investing in FY27, followed by financial and insurance activities (10.9%), information and communication (10.7%), and construction (8.6%).

Among firms that did not report capex for FY27, 50.9% indicated no plans to undertake any investment, while 17.2% expect spending to remain at FY26 levels. Meanwhile, 29% anticipate higher capex compared to FY26, and 2.9% foresee a decline, according to the Forward-Looking survey on private corporate sector capex investment intentions.

On a weighted basis, capex for acquiring new assets is expected to moderate to Rs 9.6 lakh crore in FY27 from Rs 11.4 lakh crore in FY26.

It is to be noted that out of 5,366 enterprises surveyed, 4,203 reported their investment plans for FY27. “Enterprises generally tend to adopt a conservative approach in reporting such estimates for a future year,” the ministry mentioned.

Internal accruals was the primary source of funding for capex in FY26, followed by domestic debt (23.3%), domestic equity (3.8%), foreign debt (2.4%), and foreign investment (1.04%).

Actual capex in FY25 was Rs 173.5 crore per enterprise, below the intended Rs 180.2 crore reported in the CAPEX 2024 survey, resulting in a realisation ratio of 96.3%. “This indicates that the actual expenditure was broadly in line with the investment intentions at the aggregate level for the panel of enterprises,” the ministry said.

Green energy, robotics

Firms are also directing investments towards renewable energy and robotics to support sustainability and technological advancement.

According to the report, 4.3% of enterprises will invest in green energy in FY27 compared with 6.6% in FY26. Robotics related capex was reported by 2.3% enterprises for FY27, while 2.8% reported for FY26.