According to CII, India's private capex increased by 67 percent to Rs 7.7 lakh crore in September 2025, from Rs 4.6 lakh crore a year ago. This is “the most conclusive evidence yet of a powerful and comprehensive reform in the country’s investment cycle”. The industry body released a five-point action agenda to support the economy during the current Middle East crisis and beyond. Let us also tell you what kind of information has been given in the CII report.
how much expenditure in which sector
CII's analysis of nearly 1,200 companies from the CMIE Prowess database showed that the manufacturing sector contributed the most to capex. Its share was Rs 3.8 lakh crore or almost half of the total private investment, in which metal, automobile and chemical sectors were at the forefront. The contribution of services was Rs 3.1 lakh crore, which is about 40 percent of the total. This got a boost from trade, communication and IT/ITES sectors.
Chandrajit Banerjee, Director General, CII, said the 67 per cent increase in private capex to Rs 7.7 lakh crore is the most significant signal yet that India's investment cycle has decisively changed. He said that in the third quarter of FY 2026, capacity utilization has increased from 74.3 percent in the previous quarter to 75.6 percent, while the new order book increased by 10.3 percent year-on-year and the average of bank credit growth in the second half of FY 2026 was about 14 percent, whereas in the first half it was about 10 percent.
CII's 5-point agenda
- CII's five-point agenda includes gradually reducing the central excise cut of Rs 10 per liter on petrol and diesel over six to nine months, as crude oil prices stabilise. Banerjee said that reintroducing fuel excise thoughtfully and gradually will gradually reduce the huge burden on the government exchequer, and will not have any negative impact on consumer sentiment. Also, the industry is ready to bear a large part of the input cost pressure within its own margins.
- The second measure is a Voluntary Industry Energy Conservation Agreement, in which member companies promise to reduce fuel and electricity consumption by 3-5 percent over the next two quarters. He further said that every barrel saved at the factory gate is one less barrel that the country does not have to import.
- CII also proposed a 45-day MSME payment guarantee backed by TReDS and supply-chain finance to ease working capital pressure on small enterprises.
- Other steps include supply-chain security (ringfencing), including deepening import substitution through diverse sources and domestic value addition in components, specialty chemicals and capital goods.
- This also includes front-loading investments for FY 2027 in manufacturing, energy transition and digital infrastructure, as well as increasing the number of internships under Voluntary Price Control and PMIS.
Why so much investment?
Banerjee credited the government for creating an enabling environment, citing consistent government spending, fiscal discipline, modern tax structures, PLI schemes and FTAs (free trade agreements) that cover about 70 percent of global GDP. He said that now the task of the industry is to convert this favorable environment into committed capacity, jobs, exports and value addition on a large scale. CII expects real GDP growth to exceed 7.6 percent in FY 2026, with exports touching an all-time high of $863 billion and foreign exchange reserves above $700 billion.
Contact to : xlf550402@gmail.com
Copyright © boyuanhulian 2020 - 2023. All Right Reserved.