Amid the strong momentum, the industry has proposed a five-point agenda to navigate the ongoing West Asia crisis, and beyond, including a phased rollback of fuel excise cuts, faster MSME payments, and frontloading of investments.
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Manufacturing accounted for nearly half of total private capex at ₹3.8 lakh crore last September, led by metals, automobiles, and chemicals. Services contributed ₹3.1 lakh crore, or around 40%, driven by trading, communications and IT/ITeS.
The analysis is based on data from nearly 1,200 companies in the Centre for Monitoring Indian Economy (CMIE) Prowess database.
“The 67% jump in private capex is, by some distance, the most important signal yet that India’s investment cycle has decisively turned,” said Chandrajit Banerjee, director general, CII.
ET BureauPVT capital expenditure surged 67% to ₹7.7 L Cr LAST Sept
He emphasised that going forward, the industry’s task is to convert this enabling environment into committed capacity, jobs, exports, and value addition at scale.
As part of its action plan, CII said the industry could frontload FY27 investments in manufacturing, energy transition, and digital infrastructure, while exercising voluntary price restraint on essential inputs and expanding internship intake under the PM Internship Scheme over the next 12 months.
The industry body also proposed gradually rolling back the ₹10 per litre excise duty cut on petrol and diesel over six to nine months as crude oil prices stabilise. Companies were also urged to commit to a 3-5% reduction in fuel and power consumption over the next two quarters through process optimisation, efficient logistics, fleet electrification, and increased use of renewable energy.