India's private enterprises increase capital expenditure amid global instability: report

New -Delhi, April 29 (IANS). Despite the challenges such as poor demand, geopolitical tension and high-loan costs, about 30 percent of private corporate sector firms plan to upgrade in FY 2024-25. This information was given in the government survey released Tuesday. According to the recording data released by the Ministry of Statistics, this trend reflects the increasing corporate confidence and rational view of investment amid improving economic security. According to the estimates of the survey, approximately 40.3 percent of businesses are planned to spend capital in the main assets during 2024-25. In addition, 28.4 percent of businesses plan to invest in the value expense in existing assets, while about 11.5 percent of businesses focus on opportunistic assets and 2.7 percent enterprise loans. According to the survey, the private corporate sector increased from Rs 3,151.9 crore per enterprise average gross fixed assets of Rs 3,151,9 crore to Rs 3,279.4 crore in 2023-24, showing an increase of 27.5 percent on an annual basis. The estimated capital expenditure per enterprises for the years 2021-22, 2022-23 and 2023-24 was Rs 109.2 crore, Rs 148.8 crore and Rs 107.6 crore respectively. In addition, the estimated capital expenditure per enterprises for the purchase of new assets in 2024-25 Rs 172.2 crore. The total capital expenditure (untouched) increased by 66.3 percent over a four-year period from 2021-22 to 2024-25. The primary purpose of the Capital Expenditure Survey is to estimate the tendency of capital expenditure of private corporate sector enterprises from the past three financial years (2021–22, 2022-23 and 2023-24), as well as to estimate the estimated capital expenditure for the current year (2024-25) and the upcoming financial year (2025-26). -Ians ABS/ABM shares this story tags