India Inc’s Capex Set to Touch ₹72,72,600 crore Over Next 5 Years

India Inc is preparing for a substantial surge in capital expenditure over the next 5 years, with plans to double investment levels to ₹72,72,600 crore ($850 billion). As reported by S&P Global, this expansion will be spearheaded by the power transmission, airline, and green hydrogen sectors.

The top 100 listed companies, with combined revenues of ₹85,56,000 crore ($1 trillion) and EBITDA of ₹12,83,400 crore ($150 billion) in FY25, are expected to rely mainly on internal accruals to support these investments.

Power, Airlines, and Green Hydrogen to Lead Investment Wave

The power and transmission sector will represent the largest share of the projected capex, accounting for ₹25,66,800 crore ($300 billion). Leading this drive will be major players such as NTPC, Tata Power, and Power Grid Corporation. The Tata Group is set to allocate ₹10,26,720 crore ($120 billion) towards aviation, semiconductors, and electronics, while the Adani Group plans to commit ₹1,71,120 crore ($20 billion) annually. 

In the airline sector, an estimated ₹6,41,700 crore-₹8,55,600 crore ($75–$100 billion) will be invested in fleet expansion by 2035. Indigo is seen as better placed to manage these investments, whereas Air India and SpiceJet may encounter financial stress.

Traditional and Emerging Sectors Attracting Massive Outlays

Traditional sectors like steel, cement, oil & gas, and automobiles are expected to contribute ₹21,39,000 crore ($250 billion) to the total capital outlay. Meanwhile, emerging areas such as green hydrogen and semiconductors could attract ₹4,27,800 – ₹8,55,600 crore ($50–$100 billion). 

Airports are also projected to witness investment of ₹2,99,460 crore ($35 billion). S&P Global noted that Indian firms are capitalising on strong balance sheets, healthy cash flows, and favourable government policies to reduce their reliance on debt. Banks, NBFCs like Power Finance Corporation (PFC) and REC, along with a developing bond market, are expected to provide adequate funding support.

Read More: Best EV Stocks in India in June 2025 Based on 5Y CAGR: Ashok Leyland, JBM Auto and More!

Conclusion

India’s investment landscape is undergoing a significant transformation, with an increased focus on both traditional and emerging sectors. Although the funding outlook remains positive with lower dependence on debt, S&P Global Report highlighted that sectors like renewables, steel, and airports could face heightened credit risks due to execution hurdles and market volatility.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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 the securities market are subject to market risks, read all the related documents carefully before investing.