A new research paper released by the Reserve Bank of India (RBI) has forecast a robust 54% year-on-year increase in private corporate capital expenditure, pegging the investment at a staggering ₹2.45 lakh crore for the financial year 2024-25.
The paper, titled “Corporate Investment Trends and Forecast”, attributes the projected boom to strong domestic demand, improved corporate earnings, government infrastructure push, and lower interest rates. Sectors such as manufacturing, infrastructure, logistics, and renewables are likely to lead this investment spree.
“This is a positive signal for India’s economic revival. Private sector optimism, combined with global interest in Indian markets, is driving capital expenditure to new highs,” the report stated.
Economists, however, advise caution. “Execution speed, regulatory stability, and global headwinds like oil prices or geopolitical instability could still impact these projections,” warned economist Devika Nair of ICICI Securities.
The RBI report is expected to influence monetary policy as the central bank continues to balance inflation control with growth stimulation.
