Page 33 - CII-ARTHA

MARCH 2026

strengthening pipeline of future capital expenditure. Gross investment by private firms, measured as the
The rise in project completions also points to some annual addition to Gross Fixed Assets (GFA) and Capital
improvement in investment execution, suggesting that Work in Progress (CWIP), rose to Rs 10.5 lakh crore in
a part of the previously announced investment pipeline FY25 from Rs 9.3 lakh crore in FY24, registering a growth
is gradually translating into realised capital formation. of 13 per cent. Between FY19 and FY25, gross
Together, these trends point to the early stages of a investment has grown at a CAGR of 8.3 per cent. While in
recovery in private corporate investment after a the post-pandemic period, between FY23 and FY25, it
prolonged period of moderation. has grown by 9.1 per cent, suggesting a gradual rebuilding
of the investment pipeline after the sharp disruption
caused by the pandemic.
Balance Sheet Data Points to a
Gradual Capex Recovery
Firm-level balance sheet data
An analysis of balance sheet data of non-financial private
companies, excluding Oil and Gas and Construction & show a steady rise in realised
1
Real Estate, from CMIE’s Prowess database indicates that investment since FY23, with FY25
2
after a prolonged phase of moderation, private corporate marking the strongest year in the
capex has strengthened over the past three fiscals. sample period

Annual Change in Assets of Private Companies (Rs lakh crore)

12.0 10.5
10.0 8.8 9.3
7.8 2.3
8.0 6.5 6.6 7.1
2.6 3.3 5.4
6.0 1.3 4.5 5.1 1.6
4.0 2.5 8.2 3.2 3.2 3.3 1.7 2.0
5.7 5.4 6.2 6.0 1.3 5.5
2.0 3.3 4.0 3.1 2.6 0.8 3.4 3.3
0.0 0.8 1.9
-1.5
-2.0
FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25

Gross Investment NET Investment
(GFA+CWIP) (NFA+CWIP)

Balanced Panel New Entries Total

Source: CII research based on CMIE Prowess Database

1 Number of firms differ each year, as follows:
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
3,361 3,704 4,046 4,232 4,482 4,670 4,800 4,721 2,597
Data extracted on 24th February 2026.
2 Oil & Gas has been excluded as investment in this sector is highly episodic and driven by just a few private entities. Real Estate & Construction has been
excluded as change is asset is not an appropriate indicator to gauge the level of investment.

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