Capex revival takes hold as government, industry step up spend

New Delhi: India’s capex landscape in the fiscal year, so far, has reflected signs of optimism, a report stated on Monday, saying the centre and state government capex continued to stay healthy, supporting the overall investment scenario. The encouraging aspect is the revival in capex by Indian corporations. Furthermore, the order books data for a representative sample of capital goods firms, which is a key gauge for future capital expenditure, suggest a favourable outlook for capex.

“This momentum is expected to generate positive spillover effects across other industries, supporting the broader capex cycle in the economy,” CareEdge Ratings said in its report.

According to the report, capex in sectors such as oil and gas and steel is expected to rise in FY26.

Public-sector investment has remained upbeat so far this year, with capex by the centre and state governments (aggregate capex of top 19 states) registering strong double-digit growth.

On the corporate capex front, the aggregate capex of 1,899 listed non-financial companies recorded a growth of 11 per cent, rising to Rs 9.4 lakh crore in FY25. The report noted that the uptick seen in investment announcements and completions during H1 FY26 (CMIE data) signals improving investment sentiment.