India is witnessing one of its biggest investment rebounds in recent years as private capex surged 67% to ₹7.7 lakh crore, signaling a strong investment revival across key sectors of the economy. According to the Confederation of Indian Industry (CII), the sharp rise in corporate spending reflects growing business confidence despite global uncertainties, rising oil prices, and geopolitical tensions in West Asia.
CII’s study, based on data from nearly 1,200 companies tracked through the CMIE Prowess database, found that private sector investment increased from ₹4.6 lakh crore in September 2024 to ₹7.7 lakh crore in September 2025. Industry leaders believe this marks a clear turnaround in India’s investment cycle after years of cautious expansion by companies.
Key Highlights
- India’s private capex jumps 67% to ₹7.7 lakh crore, signaling strong investment revival
- Manufacturing and services sectors drive corporate investment growth across the Indian economy
The manufacturing sector led the growth, contributing nearly ₹3.8 lakh crore in investments. Industries such as automobiles, metals, chemicals, and engineering saw strong spending as companies expanded production capacity and upgraded infrastructure. The services sector also remained active, contributing around ₹3.1 lakh crore through investments in telecom, IT services, logistics, and digital infrastructure.
Other economic indicators also pointed toward improving business sentiment. Manufacturing capacity utilisation increased to 75.6% during the third quarter of FY26, showing that factories are operating at higher levels to meet demand. Corporate order books also grew steadily, while bank credit growth picked up pace as businesses borrowed more for expansion and operational needs.
CII Director General Chandrajit Banerjee said the investment growth reflects stronger confidence among Indian companies and highlights the positive impact of government reforms, infrastructure spending, and demand recovery. He noted that businesses are now more willing to commit long-term capital toward expansion projects.
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However, industry experts cautioned that global risks still remain. Rising energy prices and supply chain disruptions linked to the ongoing West Asia conflict could impact future growth if volatility continues. To address these concerns, CII recommended measures such as supply chain diversification, support for MSMEs, increased manufacturing investments, and stronger energy security planning.
Economists believe the sharp rise in private investment could play a major role in sustaining India’s economic growth momentum over the coming years.
