30% private companies plan to invest in upgradation in FY25: Survey

New Delhi: About 30% of firms plan to invest in upgradation in 2024-25, supporting the robust increase in capital spending for the year despite challenges such as weak demand, geopolitical tensions, and high borrowing costs, the first survey of private sector capex by the statistics ministry showed on Tuesday.
The slightly lower intended capex for 2025-26 at Rs 4.9 lakh crore, though still above 2023-24 levels of Rs 4.2 lakh crore, reflects cautious planning after a strong 2024-25 when the intended capital expenditure was estimated at Rs 6.6 lakh crore.
“Overall, the trend indicates growing corporate confidence and a judicious approach to investment amid improving economic certainty,” said the inaugural edition of the survey for the period Nov 2024 to Jan 2025.
About 2,172 enterprises submitted complete information for all five years of the reference period, and the results showed an increase of 66.3% in aggregate capex over the four-year period from 2021-22 to 2024-25.
“Out of the 3,064 responding enterprises, 2,172 reported their capex intentions for 2025-26,” the survey showed.
The average gross fixed asset (GFA) per enterprise in the private sector was estimated at Rs 3,152 crore in 2021-22. It increased by 4% to Rs 3,279 crore in 2022-23 and rose by 27.5% to Rs 4,183 crore in 2023-24.