Private Sector Capex Projected to Decline Nearly 17% in FY27
India's corporate expansion plans are showing signs of moderation, with private sector capital expenditure by large firms expected to fall by nearly 17% next financial year. This follows a robust performance in 2025-26, indicating a more cautious corporate stance amid persistent global economic uncertainty, according to a forward-looking survey released by the National Statistics Office (NSO) on Monday.
Survey Reveals Conservative Investment Projections
The second edition of the NSO's forward-looking survey estimates aggregate private sector capex intentions at Rs 9.6 lakh crore for FY27, representing a significant decline from the Rs 11.4 lakh crore projected for FY26. The survey, however, noted that companies typically provide conservative projections for future spending, suggesting that final expenditure may ultimately exceed current intentions.
"Enterprises generally tend to adopt a conservative approach in reporting such estimates for a future year," the NSO stated in its official release. "It may be noted that out of the 5,366 operational enterprises that responded to the survey, 4,203 (approximately 78.3%) reported their capex investment plans for the next financial year."
Stabilization Rather Than Contraction in Private Investment
A like-to-like comparison of 3,819 enterprises that provided complete information for all three reference years (2024-25, 2025-26, and 2026-27) reveals that private investment may not contract outright but rather stabilize in the coming year. These firms recorded an actual capex of Rs 6 lakh crore in FY25, with projections showing a slight increase to Rs 6.1 lakh crore for FY26.
Notably, their spending intentions for FY27 are expected to remain largely unchanged from the FY26 projections, suggesting a plateau in investment growth rather than a sharp decline. The survey also highlighted a realization ratio of approximately 96% in FY25, demonstrating that corporate India has largely delivered on its investment commitments.
Emerging Sectors Feature in Capex Plans Despite Expected Slide
While emerging sectors are beginning to feature prominently in corporate India's capital expenditure plans, investments in these areas are expected to decline in the upcoming year. The survey revealed that nearly 6.6% of firms reported capex in green energy sources including solar, wind, and biomass during FY25, a figure projected to fall to 4.3% in FY26.
Similarly, approximately 5.8% of companies invested in robotic equipment within the manufacturing sector during the current financial year, with this percentage expected to decrease to 4.5% by FY27. The NSO survey specifically covered manufacturing firms with annual turnover of Rs 400 crore or more, while setting the threshold at Rs 300 crore for trade enterprises and Rs 100 crore for other players.
The survey findings underscore the shifting investment landscape as India Inc navigates global economic headwinds while maintaining cautious optimism about future growth prospects.
