CII says private sector capex grew by 67% in September 2025, Pg12

Key Highlights:

• Private sector capital expenditure in India grew by 67% to ₹7.7 lakh crore in September 2025 compared to September 2024, according to CII data.
• The Confederation of Indian Industry (CII) has urged Indian industries to support the economy amidst the West Asia crisis.
• The CII recommends measures such as reducing fuel usage, providing payment guarantees to MSMEs, and accelerating capital investment plans.

Detailed Insights:

• The CII data indicates a significant turnaround in India's investment cycle, driven by increased capacity utilization, expanding order books, and robust bank credit growth.
• Manufacturing sector has committed close to ₹3.8 lakh crore, led by metals, automobiles and chemicals, while services have put in ₹3.1 lakh crore led by trading, communications and IT/ITeS.
• The CEA highlighted that despite a 30.8% annual growth in corporate profits post-COVID among BSE 500 and NSE 500 companies, private sector capital formation rates remain disappointing.
• CII proposed rolling back the ₹10 per litre central excise cut on petrol and diesel in phases, as the Centre is currently foregoing about ₹14,000 crore monthly due to these cuts implemented in March 2026.
• The industry body also suggests a 3-5% reduction in fuel and power consumption, a voluntary 45-day MSME payment guarantee, deeper import substitution, and front-loading FY27 investments.
• The CII's recommendations aim to provide a concrete partnership offer to the government, addressing both economic challenges and global uncertainties.

Key Concepts Involved:

• Capital Expenditure (Capex): Funds used by a company to acquire or upgrade physical assets such as property, buildings, or equipment.
• MSMEs: Micro, Small, and Medium Enterprises, which are vital to economic growth and employment generation.
• Import Substitution: A trade and economic policy that advocates replacing foreign imports with domestic production.