Latest news with #Forward-LookingSurveyonPrivateSectorCAPEXInvestmentIntentions
Indian Express
01-05-2025
- Business
- Indian Express
Opinion Mapping capex by private sector: Well begun
The Ministry of Statistics and Programme Implementation (MoSPI) has released the first ever 'Forward-Looking Survey on Private Sector CAPEX Investment Intentions'. Capex essentially refers to capital expenditure, which means money spent towards the creation of long-term productive assets in the economy. As the survey underscores, 'capex is fundamental to expanding production capacity, thereby serving as a catalyst for accelerated economic growth. This growth, in turn, supports job creation and enhances labour productivity.' For a developing economy such as India, high growth rate in capex is central to achieving the ambition of becoming a prosperous nation and transitioning to becoming a developed country. The survey was conducted between November 2024 and January 2025. The primary objective of this survey is to estimate the capex trends of private corporate sector enterprises for five years: From the past three financial years (2021-22, 2022-23 and 2023-24, in the current instance) along with anticipated capital expenditure for the current year (2024-25, in this instance) and the upcoming financial year (2025-26). Out of a total of 3,064 responding enterprises, only 2,172 reported their capex data (actual and intentions) for the full five-year period. Even though the survey was conducted under the Collection of Statistics Act, 2008, MoSPI noted that many companies had reservations about sharing data, thanks to concerns relating to legitimacy and cyber-risks. As a result, even MoSPI advises caution when reading the data. 'As this is the first round of the survey, the findings may be seen as indicative and subject to refinement in future iterations,' it says. On the whole, the data shows sharp fluctuations in private capex from one year to another — varying from Rs 3.9 trillion in FY22 to Rs 5.7 trillion in FY23, then falling to Rs 4.2 trillion in FY24 before rising to Rs 6.6 trillion in FY25 and then falling to as low as Rs 4.9 trillion in FY26. The year on year variations are so substantial that one can draw very different conclusions based on the year chosen for analysis. For instance, between FY22 and FY25, the capex grew by 66 per cent but if you add the current year (FY26), the overall growth fell to 23 per cent. Even so, the survey underscores the existing notion that private sector capex has not grown fast enough. The Union government's capex, for instance, grew by 230 per cent in the five years between FY21 and FY25. The government under Prime Minister Narendra Modi has been trying to incentivise private sector capex because it believes that only when the private sector starts investing can India make the economic transition. To that end, it is a welcome move that the government has now started formally mapping capex by the private sector. In the coming years, it will further help policymakers and corporations in making better choices.
Time of India
29-04-2025
- Business
- Time of India
Corporate capital spending in India set to drop by 25% in 2025-26: Survey
The private corporate sector's planned capital spending is expected to shrink by nearly 25% in 2025-26, falling to Rs 4.88 lakh crore from Rs 6.56 lakh crore in the current financial year, according to a government survey released on Tuesday. The Forward-Looking Survey on Private Sector CAPEX Investment Intentions, conducted by the ministry of statistics and programme implementation (MoSPI) between November 2024 and January 2025, revealed a cautious outlook among enterprises regarding future investments. The study also reflected past figures, Rs 3.94 lakh crore in 2021-22, Rs 5.72 lakh crore in 2022-23, and Rs 4.22 lakh crore in 2023-24. The report is based on data from 2,172 enterprises that consistently shared investment details over five years. Despite the projected fall for FY26, aggregate capex across the four-year period from 2021-22 to 2024-25 showed a 66.3% increase, and a 23.9% rise when FY25-26 intentions are factored in. The average gross fixed assets (GFA) per enterprise rose steadily, from Rs 3,151.9 crore in 2021-22 to Rs 4,183.3 crore in 2023-24, with the electricity, gas, steam, and air conditioning sector showing the highest average at over Rs 14,000 crore, followed by manufacturing, where per-enterprise assets ranged from Rs 7,000 to Rs 10,000 crore. Manufacturing companies accounted for over 65% of total GFAs during 2021-22 to 2023-24, while the utilities sector made up 8–10%. In 2024-25, manufacturing continues to dominate capital spending intentions, comprising 43.8% of the Rs 172.2 crore average capital expenditure per enterprise, followed by information and communication (15.6%) and transportation and storage (14%). Machinery and equipment purchases made up over half, 53.1%, of the total provisional capex in 2024-25. Meanwhile, 40.3% of enterprises reported plans to invest in core assets, 28.4% in enhancing existing assets, and smaller proportions in opportunistic and debt-linked strategies. The survey also revealed the motives behind capex: nearly half (49.6%) of the enterprises are investing primarily for income generation, while 30.1% are focused on technological upgrades. Only 2.8% cited diversification as their reason for investing. The national statistical office (NSO) carried out this inaugural forward-looking capex survey, following a 2022-23 recommendation from the Parliamentary Standing Committee to improve the scope and depth of private sector investment data. Covering over 5,300 enterprises from both Census and sample sectors, the survey provides one of the most detailed pictures yet of India Inc.'s capital expenditure landscape. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
Time of India
29-04-2025
- Business
- Time of India
Private sector capex likely to dip 25% to Rs 4.88 lakh crore in FY26: Govt survey
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Intended capital expenditure of the private corporate sector is estimated to decline by about 25 per cent to Rs 4.88 lakh crore in 2025-26 from Rs 6.56 lakh crore in FY25, said a government survey report released on Tuesday. According to the Forward-Looking Survey on Private Sector CAPEX Investment Intentions between November 2024 and January 2025, conducted by the Ministry of Statistics & Programme Implementation, the actual capex in the private corporate sector was Rs 3.94 lakh crore in 2021-22, Rs 5.72 lakh crore in 2022-23 and Rs 4.22 lakh crore in 2023-24.A total of 2,172 enterprises submitted complete information for all five years of the reference period, forming a fixed aggregated (unweighted) capex data from this panel of enterprises serves as a reliable basis for analysing capital expenditure trends over the five-year period, the ministry results show an overall increase of 66.3 per cent in aggregate capex (unweighted) over the four-year period from 2021-22 to of the 3,064 responding enterprises, 2,172 reported their capex intentions for data indicates a cautious approach by respondents in declaring their capital expenditure the report said the Capex data for 2025-26 should be interpreted with caution, considering the conservative approach and apprehension shown by the responding enterprises in reporting these the results show an overall increase of 23.9 per cent in aggregate capex (unweighted) from 2021-22 to 2025-26 for this fixed panel of 2,172 enterprises, the data average gross fixed asset (GFA) per enterprise in the private corporate sector was estimated at Rs 3,151.9 crore in increased by 4 per cent to Rs 3,279.4 crore in 2022-23 and further grew by 27.5 per cent to reach Rs 4,183.3 crore in highest GFA per enterprise, exceeding Rs 14,000 crore, was observed in the industry category of 'Electricity, Gas, Steam, and Air Conditioning Supply', followed by 'Manufacturing' enterprises (Rs 7,000 crore to Rs 10,000 crore), the report principally engaged in manufacturing activities accounted for more than 65 per cent of the total gross fixed assets in the private corporate sector over the past three years from 2021-22 to 2023-24, followed by enterprises engaged in 'Electricity, Gas, Steam, and Air Conditioning Supply' (8 per cent-10 per cent).In 2021-22, the estimated actual capex per enterprise was Rs 109.3 crore compared to the proposed value of Rs 102.7 crore, resulting in a realisation ratio of 106.41 per cent.A similar trend was observed in 2022-23, where the estimated value of actual capex per enterprise reached Rs 148.8 crore against a proposed value of Rs 133.3 crore, yielding a realisation ratio exceeding 100 per cent, it 2023-24, the realisation ratio stands at 99.7 per cent, with the estimated actual capex per enterprise at Rs 107.6 crore and the proposed capex at Rs 107.9 estimated provisional capital expenditure per enterprise for acquiring new assets in 2024-25 stands at Rs 172.2 the sectors, manufacturing enterprises account for the largest share at 43.8 per cent, followed by those in 'Information and Communication Activities' (15.6 per cent) and 'Transportation and Storage Activities' (14 per cent).The estimated provisional capital expenditure per enterprise for acquiring new assets in 2024-25 stands at Rs 172.2 of the total capital expenditure provisionally incurred in the year 2024-25, nearly 53.1 per cent were utilised for purchasing machinery and to survey estimates, nearly 40.3 per cent of enterprises plan to undertake capex on core assets during 28.4 per cent intend to invest in value addition to existing assets, while around 11.5 per cent focus on opportunistic assets, and 2.7 per cent on debt strategy of investing in distressed assets and non-performing loans was adopted by less than one-half of a per cent of enterprises. Meanwhile, about 16.9 per cent allocated their capex towards other diverse investment survey estimates indicate that nearly 49.6 per cent of private corporate sector enterprises undertook capex in 2024-25 primarily for income additional 30.1 per cent directed their investments toward upgradation, while around 2.8 per cent focused on remaining 17.5 per cent of enterprises reported using their capex for other reasons, it sample size for the survey was 5,380 enterprises: 4,145 enterprises in the Census sector and 1,235 enterprises in the sample 2022-23, the Parliamentary Standing Committee recommended that the Ministry of Statistics and Programme Implementation (MoSPI) develop a comprehensive methodology to capture capital expenditure (capex) data from the private instruments designed to capture data on past investments projected capex for the next two years, and the breakdown of investments by asset type were developed in alignment with the specifications of the Department of Economic to this recommendation, the National Statistical Office (NSO) conducted the inaugural Forward-Looking Survey on Private Sector CAPEX Investment Intentions between November 2024 and January 2025.
