India’s Private Capex Revival:
India’s private sector capital expenditure (Capex), often regarded as the missing pillar of the country’s post-pandemic growth story, is witnessing a strong revival. Reserve Bank of India (RBI) data showing industrial credit growth of 19.2% year-on-year (YoY) in June 2026, up from 6.3% a year earlier, signals a transition from public investment-led recovery to a broad-based private investment cycle.India’s private capex cycle is witnessing a structural revival, driven by rising capacity utilisation, healthier corporate balance sheets, robust industrial credit growth, government-led crowding-in, and policy support such as the PLI Scheme and PM Gati Shakti, shifting growth towards manufacturing and infrastructure-led expansion.Sustaining the momentum requires addressing key challenges such as geopolitical uncertainty, imported inflation, high borrowing costs, regulatory bottlenecks and weak rural demand through faster project clearances, targeted credit support, logistics reforms and innovative financing mechanisms like InvITs and REITs.
