Business EconomyPosted at: May 10 2026 4:30PM


India’s private capex jumps 67 pc to Rs 7.7 lakh cr, signals investment revival: CII

New Delhi, May 10 (UNI) India’s private capital expenditure surged 67 per cent year-on-year to Rs 7.7 lakh crore in September 2025 from Rs 4.6 lakh crore a year earlier, signalling a broad-based revival in the country’s investment cycle, according to the Confederation of Indian Industry (CII).
In a statement, CII said its analysis of nearly 1,200 companies from the CMIE Prowess database showed manufacturing remained the key driver of the capex push, contributing Rs 3.8 lakh crore — nearly half of total private investment. Sectors such as metals, automobiles and chemicals led the manufacturing expansion.
The services sector accounted for Rs 3.1 lakh crore, or around 40 per cent of total private investment, supported by strong spending in trading, communications and IT/ITeS.
“The 67 per cent jump in private capex to Rs 7.7 lakh crore is, by some distance, the most important signal yet that India’s investment cycle has decisively turned,” said Chandrajit Banerjee, Director General, CII.
He noted that capacity utilisation rose to 75.6 per cent in the third quarter of FY26 from 74.3 per cent in the previous quarter, while new order books increased 10.3 per cent year-on-year. Bank credit growth also averaged close to 14 per cent in the second half of FY26, compared with around 10 per cent in the first half of the fiscal year.
Alongside the investment data, CII unveiled a five-point action agenda aimed at supporting the economy amid the ongoing West Asia crisis and global uncertainties.
The industry body proposed a phased rollback of the Rs 10 per litre cut in central excise duty on petrol and diesel over the next six to nine months as crude oil prices stabilise.
“A calibrated phased restoration of the fuel excise will progressively relieve the exchequer of a very substantial burden without disrupting consumer sentiment, and industry is prepared to absorb a meaningful share of input cost pressures within its own margins,” Banerjee said.
CII also suggested a voluntary energy conservation compact under which member companies would target a 3-5 per cent reduction in fuel and power consumption over the next two quarters.
“Every barrel saved at the factory gate is a barrel less the country has to import,” he added.
The industry chamber further recommended a 45-day MSME payment guarantee mechanism backed by TReDS and supply-chain financing to ease working capital pressures on small businesses.
Other recommendations included strengthening supply-chain resilience through import substitution and diversified sourcing, increasing domestic value addition in components, specialty chemicals and capital goods, and front-loading FY27 investments in manufacturing, energy transition and digital infrastructure.
CII also called for voluntary price restraint by industry and an expansion of internship intake under the Prime Minister Internship Scheme (PMIS).
Banerjee credited the government’s policy measures for creating an enabling investment environment, citing sustained public capex, fiscal discipline, tax reforms, production-linked incentive (PLI) schemes and free trade agreements covering nearly 70 per cent of global GDP.
“Industry’s task now is to convert this enabling environment into committed capacity, jobs, exports and value addition at scale,” he said.
CII expects India’s real GDP growth to exceed 7.6 per cent in FY26, with exports projected to hit a record USD 863 billion and foreign exchange reserves remaining above USD 700 billion.
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