Skyline of Mumbai city.
New Delhi: On 29 April 2025, the Ministry of Statistics and Programme Implementation released its first report on Private Sector Capital Expenditure (Capex).
The first-of-its-kind, the Forward-Looking Survey on Private Sector Capex, Investment Intentions was conducted under the Collection of Statistics Act, 2008.
The MoSPI has already issued a notification regarding the selected enterprises, explaining the survey’s objectives and assuring confidentiality. Before going into the findings of the report, it is pertinent to understand the background of the report.
Survey background
The Parliamentary Standing Committee recommended in 2022–2023 that the Ministry of Statistics and Programme Implementation (MoSPI) develop a thorough methodology to collect/capture private sector capital expenditure (capex) data.
Following the specifications/requirements of the Department of Economic Affairs (DEA) under the the Ministry of Finance, survey instruments were created to gather information on previous investments, anticipated capex for the upcoming two years, and the breakdown of investments by asset type.
The National Statistical Office (NSO) conducted the first Forward-Looking Survey on Private Sector capex Investment Intentions between November 2024 and January 2025, in response to this recommendation.
To collect structured capex data, this is the MoSPI’s first initiative to interact with the business sector using a web-based survey platform that was self-administered and assisted by chatbots.
The survey results have been made public by MoSPI in the form of an extensive pamphlet. The endnote provides a concise synopsis of important elements, including survey coverage, sampling strategy, and data collection procedure.
To estimate the trends of private corporate sector enterprises for the past three financial years (i.e. 2021-22, 2022-23, 2023-24) as well as the expected capital expenditure for the present year[1] (i.e. 2024-25) and upcoming financial year (2025-26) is the main objective of the capex survey.
The final survey frame included 16,025 enterprises.
The overall sample size of the survey was 5,380 enterprises; among which 4,145 enterprises/businesses were in the Census Sector and 1,235 enterprises in the Sample Sector.
Key advantages of the survey
Capital expenditure is essential for national investment and improving the economy’s physical assets. It creates long-term assets that generate revenue and enhance operational efficiency.
Capex is crucial for expanding production capacity, driving economic growth, creating jobs, and boosting labour productivity.
Accurate and Extensive data on capex is valuable for government departments, private enterprises, trade associations, researchers, and other stakeholders. It supports evidence-based policy-making and helps businesses make strategic investment decisions based on survey insights.
Important caveat
In the first edition, the survey had a 58.3 percent response rate, with higher rates in the census sector (58.6 percent in the census sector and 57.2 percent in the sample sector).
Respondents were hesitant to share capex plans, mostly pending management approvals.
Some organisations, such as Special Purpose Vehicles (SPVs) engaged in infrastructure projects, were left out of the survey since they claim no turnover despite large capex. Due to the completion of their projects, some of the SPVs that were listed had no intentions for future investments.
Since this is the initial year of the survey, the results might be regarded as preliminary and could be improved in subsequent rounds/surveys. It is also crucial to remember that the findings could not be representative of the whole private corporate sector because they are based on answers from larger businesses with turnover levels exceeding predetermined benchmarks.
Therefore, the MoSPI stated that users are advised to interpret the results keeping these limitations in mind.
Key findings
Source: Press Release on Findings of the Forward-Looking Survey on Private Sector CAPEX Investment Intentions, MoSPI
Insights and way forward for future survey conduct
The NSO conducted the Forward-Looking Survey on Private Sector Capex Investment Intentions under the Collection of Statistics Act, 2008. Selected enterprises received notices explaining the survey’s objectives and ensuring confidentiality.
Some enterprises raised concerns about the legitimacy of notices with portal credentials, leading to cyber risk issues.
Phone explanations of portal usage and submission procedures were challenging. Data analysis revealed problems like incorrect unit entries and non-responses to queries.
Enterprises also struggled with selecting NIC codes and estimating future investments without official data.
Capex tends to increase when companies/enterprises focus on growth strategies rather than maintaining current operations. Despite challenges like weak demand, geopolitical tensions, and high borrowing costs, around 30 percent of firms are planning to invest in upgrades in 2024–25, leading to a sharp increase in capex for that year.
The slightly lower intended capex for 2025–26, although still higher than 2023–24 levels, shows cautious planning after a strong 2024–25.
Overall, this trend indicates growing corporate confidence and a prudent approach to investment in the face of improving economic certainty.
The initial round of the capex survey was experimental, offering insights to improve future surveys. Enhancements will include refining the questionnaire, methodology, and processes, addressing concerns about survey authenticity, providing assistance to enterprises, ensuring confidentiality, and deploying field personnel for support.
Future surveys will also gather qualitative inputs to better understand investment trends. The next survey is planned for October to December 2025.
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