Private Corporate Capex Rises to ₹30.3 Trillion in FY25, Up 7% From FY24

Private corporations invested ₹30.3 trillion in fixed assets in FY25, 7% higher than the ₹28.3 trillion recorded in FY24, according to The Business Standard news report citing detailed GFCF data from the statistics ministry. 

Corporate capital expenditure had risen 2.65% in FY24. The latest figures cover investment in plant, machinery, buildings, and intellectual property products. 

Machinery Accounts for the Biggest Share 

Machinery and equipment made up nearly half of private corporate investment in FY25. Spending on these assets rose about 6% during the year, compared with barely 1% growth in FY24. 

Corporate investment in dwellings, buildings and structures was the next largest category. Intellectual property products also accounted for a sizeable part of spending. 

Private corporations invested around ₹8.5 trillion in intellectual property products such as software, research and development and databases. That was close to four-fifths of the total investment in these assets. 

Households Account for the Largest Share 

Total investment in fixed assets stood at ₹99.76 trillion in FY25. Households accounted for 43.7% of the total, while private non-financial corporations accounted for 30.4%. 

Public non-financial corporations and the general government together accounted for about 24.2%. Overall fixed investment grew 8.2% in FY25, compared with 9% in FY24. 

Household investment was largely directed towards buildings and other structures. Nearly three-quarters of household investment, or close to ₹33 trillion, went into dwellings, buildings and structures. 

Buildings and structures accounted for 58.8% of India's total fixed investment in FY25.  

Machinery and equipment accounted for 30.6%, intellectual property products for 10.4%, and cultivated biological resources, including orchards, plantations and livestock, for 0.2%. 

Government Capex Growth  

Government capital spending grew 10.2% in FY25, compared with 18.5% in FY24. State government capital expenditure also moderated as states worked to manage their fiscal deficits. 

The government and public sector together invested just under ₹1.9 trillion in intellectual property products. The general government accounted for around ₹1 trillion. 

Read More: GIFT City IFSC Disburses Over $52.8 Billion Under RBI’s FCNR(B) Swap Facility! 

Conclusion 

Private corporate capex increased at a faster rate in FY25 than in the previous year. Government capital spending also rose, but its growth was lower than in FY24, while households remained the largest contributor to fixed investment. 

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