Private capex surges 67% to ₹7.7 lakh crore, strongest investment revival in a decade
Synopsis
India's private investment cycle has posted its sharpest single-year jump in over a decade — ₹7.7 lakh crore in September 2025, up 67% year-on-year. With manufacturing, services, and bank credit all moving in the same direction simultaneously, CII says the turnaround is decisive. The real test is whether jobs and exports follow.
Key Takeaways
Private capex surged 67% to ₹7.7 lakh crore in September 2025 , up from ₹4.6 lakh crore a year earlier.
Manufacturing led with ₹3.8 lakh crore ; services contributed ₹3.1 lakh crore .
Capacity utilisation rose to 75.6% in Q3 FY26; new order books grew 10.3% year-on-year.
Bank credit growth averaged 14% in H2 FY26, up from 10% in H1.
CII proposed a five-point action agenda including a phased excise duty rollback and a 45-day MSME payment guarantee via TReDS .
India's private capital expenditure surged 67% to ₹7.7 lakh crore in September 2025, marking the strongest revival in the country's investment cycle in more than a decade, according to the Confederation of Indian Industry (CII). The industry body released its findings on Sunday, 10 May, drawing on an analysis of nearly 1,200 companies from the CMIE Prowess database.
Scale of the Turnaround
Private capex climbed sharply from ₹4.6 lakh crore in September 2024 to ₹7.7 lakh crore in September 2025 — a ₹3.1 lakh crore absolute increase in a single year. Manufacturing accounted for ₹3.8 lakh crore, or nearly half of total private investment, led by metals, automobiles, and chemicals. The services sector contributed ₹3.1 lakh crore, driven by trading, communications, and IT/ITeS industries.
Supporting Economic Indicators
Complementary data reinforced the investment upturn. Capacity utilisation among manufacturing firms rose to 75.6% in the third quarter of FY26, up from 74.3% in the previous quarter. New order books expanded 10.3% year-on-year. Bank credit growth also accelerated sharply, averaging nearly 14% in the second half of FY26 compared with around 10% in the first half — a signal that businesses are not just announcing projects but actively drawing down financing to execute them.
What CII Said
Chandrajit Banerjee, Director General of CII, described the data as a decisive inflection point.
Point of View
200 companies, which skews toward larger, listed firms; the MSME segment — where the proposed 45-day payment guarantee signals ongoing stress — tells a more mixed story. The five-point action agenda, particularly the excise duty rollback proposal, also reveals that industry is hedging: the investment revival is real, but fragile enough that external shocks from West Asia or a US slowdown could quickly dent it.
NationPress
28 Jun 2026
Frequently Asked Questions
What is the significance of India's private capex jumping 67% to ₹7.7 lakh crore?
India's private capex jumped 67% to ₹7.7 lakh crore in September 2025, up from ₹4.6 lakh crore in September 2024, according to CII's analysis of nearly 1,200 companies. CII called it the strongest revival in India's investment cycle in more than a decade.
Which sectors drove the private capex surge?
Manufacturing accounted for ₹3.8 lakh crore, led by metals, automobiles, and chemicals. The services sector contributed ₹3.1 lakh crore, driven by trading, communications, and IT/ITeS industries.
What other indicators support the investment revival?
Capacity utilisation rose to 75.6% in Q3 FY26 from 74.3% in the previous quarter, new order books expanded 10.3% year-on-year, and bank credit growth averaged nearly 14% in H2 FY26 — all pointing to a broadening investment recovery.
What is CII's five-point action agenda?
CII proposed a phased rollback of the central excise duty cut on petrol and diesel over six to nine months, a voluntary energy conservation initiative targeting a 3–5% reduction in fuel and power consumption, and a voluntary 45-day MSME payment guarantee backed by the TReDS platform to ease working capital stress for small businesses.
