NEW DELHI: Private capital expenditure (capex) in India remained weak in the fourth quarter of FY25, even as overall project announcements surged, according to a report by Avendus Spark .
While new project announcements across the public and private sectors rose by 22.7 per cent year-on-year ( YoY ) to Rs 18 trillion in Q4FY25, the private sector contributed only marginally to this growth, reported news agency ANI.
The report said, " Private capex remains sluggish in Q4FY25...New project announcements, encompassing both public and private sectors, surged approximately 22.7 per cent to Rs 18tn in Q4FY25." However, it added that private project announcements grew by just 4 per cent YoY during the quarter and even declined 9 per cent for the full fiscal year, touching Rs 27 trillion. This downturn was largely due to subdued activity in the services and construction/real estate sectors.
The muted sentiment was attributed to “weak domestic consumer demand and rising global macro uncertainty,” which has triggered delays and downsizing in capex plans. According to the report, investor caution has also been amplified by ongoing concerns over US tariff regimes and potential import surges from China.
While the overall outlook remained muted, some segments showed resilience. The electricity and renewable energy sectors recorded a 55 per cent increase in private project announcements. Manufacturing announcements dropped 5 per cent YoY, and Services plunged 18 per cent. Yet, sub-segments such as textiles, food & agro , metals and transport equipment registered strong growth.
However, private project completions also declined sharply. In Q4FY25, completed private projects fell 41 per cent YoY to Rs 965 billion. This included a 30 per cent drop in manufacturing completions, a 70 per cent fall in services, and an 89 per cent slump in construction and real Estate.
For FY25 as a whole, private completions were down 31 per cent YoY at Rs 2.5 trillion compared to Rs 3.6 trillion in FY24.
Some bright spots did emerge. Mining project completions soared 732 per cent YoY to Rs 25 billion, up from just Rs 3 billion a year ago. Meanwhile, electricity investments continued to rise, reaching Rs 5.6 trillion in Q4FY25.
A few days back, a government survey cited by news agency PTI also indicated a conservative capex approach for FY26.
The ministry of statistics & programme implementation projected a 25 per cent drop in intended private capex to Rs 4.88 lakh crore for FY26 from Rs 6.56 lakh crore in FY25. The Forward-Looking Survey attributed this to a cautious stance among enterprises amid lingering uncertainties.
Together, the findings point to a challenging investment environment for private players, with optimism limited to select sectors like energy and mining.
While new project announcements across the public and private sectors rose by 22.7 per cent year-on-year ( YoY ) to Rs 18 trillion in Q4FY25, the private sector contributed only marginally to this growth, reported news agency ANI.
The report said, " Private capex remains sluggish in Q4FY25...New project announcements, encompassing both public and private sectors, surged approximately 22.7 per cent to Rs 18tn in Q4FY25." However, it added that private project announcements grew by just 4 per cent YoY during the quarter and even declined 9 per cent for the full fiscal year, touching Rs 27 trillion. This downturn was largely due to subdued activity in the services and construction/real estate sectors.
The muted sentiment was attributed to “weak domestic consumer demand and rising global macro uncertainty,” which has triggered delays and downsizing in capex plans. According to the report, investor caution has also been amplified by ongoing concerns over US tariff regimes and potential import surges from China.
While the overall outlook remained muted, some segments showed resilience. The electricity and renewable energy sectors recorded a 55 per cent increase in private project announcements. Manufacturing announcements dropped 5 per cent YoY, and Services plunged 18 per cent. Yet, sub-segments such as textiles, food & agro , metals and transport equipment registered strong growth.
However, private project completions also declined sharply. In Q4FY25, completed private projects fell 41 per cent YoY to Rs 965 billion. This included a 30 per cent drop in manufacturing completions, a 70 per cent fall in services, and an 89 per cent slump in construction and real Estate.
For FY25 as a whole, private completions were down 31 per cent YoY at Rs 2.5 trillion compared to Rs 3.6 trillion in FY24.
Some bright spots did emerge. Mining project completions soared 732 per cent YoY to Rs 25 billion, up from just Rs 3 billion a year ago. Meanwhile, electricity investments continued to rise, reaching Rs 5.6 trillion in Q4FY25.
A few days back, a government survey cited by news agency PTI also indicated a conservative capex approach for FY26.
The ministry of statistics & programme implementation projected a 25 per cent drop in intended private capex to Rs 4.88 lakh crore for FY26 from Rs 6.56 lakh crore in FY25. The Forward-Looking Survey attributed this to a cautious stance among enterprises amid lingering uncertainties.
Together, the findings point to a challenging investment environment for private players, with optimism limited to select sectors like energy and mining.
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