RBI Projects 21.5% Jump in Private Capex to ₹2.67 Lakh Crore in FY26

As per the RBI article, India is set for a robust private capital investment surge in FY26, with estimates indicating a rise of 21.5% to ₹2,67,432 crore, driven by healthier corporate finances, favourable policy rates, and strong macroeconomic conditions.

Capital Investment Outlook for FY26

The Reserve Bank of India (RBI) projects private corporate capital expenditure (capex) to increase by 21.5% in FY26, climbing to ₹2,67,432 crore from ₹2,20,132 crore in FY25. This growth trajectory highlights strengthening investor confidence, improved balance sheets and rising profitability among firms entering the new fiscal year.

Favourable Economic Environment

A combination of supportive macroeconomic trends is bolstering private capex. These include a 100 basis point drop in policy rates, sustained disinflation, rising capacity utilisation, and easy liquidity. These factors are collectively creating a conducive ecosystem for long-term private sector investments, particularly in infrastructure-led development.

Read More: India’s GDP Growth Hits 7.8% in Q1 FY26, Beating RBI’s Projection!

Sectoral Highlights & Funding Channels

The infrastructure sector remains a key beneficiary of this capex upswing, with the 'power' segment leading the charge. Data compiled from diverse funding sources, including bank or FI sanctions, external borrowings, and equity issuances, illustrates a broad-based push across greenfield projects. These developments not only represent cyclical recovery but also point toward durable capacity enhancements.

Risks and Investment Execution Challenges

Despite strong fundamentals, risks such as geopolitical tensions, global slowdown, and external demand shifts could temper sentiment. The actual execution of planned investments remains central to sustaining momentum. Continuous policy support and monitoring of implementation will be vital to translating intent into economic contribution.

Conclusion

The projected 21.5% growth in private capex to ₹2,67,432 crore in FY26 signals strong domestic confidence and policy effectiveness. While external headwinds remain, India's internal financial stability and infrastructure thrust present significant growth potential for capital investments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.