Key Highlights

• S&P Global projects India’s largest capex cycle in over a decade, targeting $850 billion by 2030.
• Spending financed mainly from operating cash flows, boosting infrastructure, power, airlines, renewables, while maintaining healthy credit profiles.

According to S&P Global Ratings, India's corporate sector is preparing for the largest capital expenditure cycle in over a decade, with companies planning to nearly double investments over the next five years.

The rating agency estimates that the total capital expenditure could be between $800 billion and $850 billion, with the majority of the funding coming from domestic financing channels and operating cash flows. If execution remains on track and macroeconomic conditions remain stable, S&P expects companies to grow without incurring significant debt.

Also Read: Finance Minister Sitharaman: Capex spending up, not down in Lok Sabha

Infrastructure will drive the surge, with power, roads, and transportation spending expected to double. Industrial capex could increase by 40% to 50%. Aviation and renewables are expected to account for approximately 15% of total spending and roughly 40% of incremental investment. Renewable capacity targets range from 200 GW to 500 GW, while power transmission may require $100 billion in capital expenditure.

Aviation is growing rapidly. Indian airlines have ordered more than 1,600 aircraft through 2030, and the number of airports is expected to increase to 220 from 150. S&P noted that airport investments could double or triple. Public lenders such as Power Finance Corp., REC, and IREDA are expected to play an important role.