India’s private capital expenditure surged by 67 percent to Rs 7.7 lakh crore in September 2025 from Rs 4.6 lakh crore in September 2024, according to the Confederation of Indian Industry (CII) report.
CII’s analysis of nearly 1,200 companies, drawn from the CMIE Prowess database, shows that private sector investment, measured as the annual change in net fixed assets and capital work in progress, rose to Rs 7.7 lakh crore in September 2025, a 67 percent jump over Rs 4.6 lakh crore a year earlier.
Manufacturing led the way, accounting for Rs 3.8 lakh crore or nearly half of total private capex, with metals, automobiles and chemicals at the forefront. Services contributed Rs 3.1 lakh crore, or about 40 percent, driven by trading, communications and IT/ITeS.
Capacity utilisation of manufacturing firms rose to 75.6 percent in Q3 FY26 from 74.3 percent in the previous quarter, while new order books grew 10.3 percent year-on-year. Bank credit growth has rebounded sharply, averaging close to 14 percent in the second half of FY26 against around 10 percent in the first half.
Meanwhile, CII has also unveiled a five-point industry action agenda for the duration of the West Asia crisis and beyond.
Phased drawdown of the fuel excise cut: The Rs 10 per litre central excise cut on petrol and diesel, taken at significant cost to the exchequer, should be progressively rolled back in tranches over six to nine months as crude prices stabilise.
Voluntary industry energy conservation compact: Member companies may like to commit to a 3 to 5 percent reduction in fuel and power consumption over the next two quarters through process optimisation, efficient logistics, fleet electrification and accelerated renewable power purchase agreements.
45-day MSME payment guarantee: Larger member corporates could commit to a voluntary 45-day MSME payment guarantee, backed by aggressive use of the TReDS platform and supply-chain finance, to ease working capital pressure on small enterprises during this volatile period.
Supply-chain ringfencing and deeper import substitution: Indian supply chains will be ringfenced through diversified sourcing, strategic inventory buffers and tie-ups with alternative geographies, alongside deeper domestic value addition in components, specialty chemicals and capital goods.
Front-loaded private capex, voluntary price restraint and internship push: Industry may front-load FY27 investments in manufacturing, energy transition and digital infrastructure, exercise voluntary price restraint on essential inputs, and scale up internship intake over the next twelve months under the PMIS.
