Statsguru: Private sector remains cautious on investment plans in India

While investments in manufacturing were relatively stable, the same is not true of information & communication as well as the transportation & storage sector

The International Monetary Fund (IMF) recently pointed to lacklustre private-sector investments in India, while the finance ministry cautioned against the global uncertainty making India Inc hold on to its capital formation plans during 2025-26.   

 

An examination of the available data supports these observations. 

 

According to a recent survey by the National Statistics Office (NSO), private-sector capital expenditure (capex) has witnessed sharp fluctuations over the recent years, with the current financial year likely to witness over 25 per cent decline (Chart 1). 

 

While investments in manufacturing were relatively stable, the same is not true of information &