CII Releases Five-point Action Plan For West Asia Crisis
India’s private sector capital expenditure rose 67 per cent year-on-year to Rs 7.7 lakh crore in September 2025 from Rs 4.6 lakh crore a year earlier
New Delhi: Leading industry lobby Confederation of Indian Industry (CII) on Sunday said that India’s private sector capital expenditure rose 67 per cent year-on-year to Rs 7.7 lakh crore in September 2025 from Rs 4.6 lakh crore a year earlier. However, the data points to a broad-based recovery in the country's investment cycle.
Besides, the CII also unveiled a five-point industry action plan during the ongoing West Asia crisis. “The proposals include a phased rollback of the Centre’s fuel excise cut, voluntary energy-saving measures by companies, faster payments to MSMEs, supply-chain strengthening and front-loading of private investments,” it said.
In its five-point agenda, the industry body also pitches for a 45-day MSME payment guarantee; supply-chain ring-fencing with deeper import substitution; and a front-loading of private capex coupled with voluntary price restraint and a stepped-up internship intake; among others.
The CII, however, termed the surge in private capex as the most decisive evidence yet of a powerful and broad-based revival in the country's investment cycle. “The Rs 10 per litre central excise cut on petrol and diesel, taken at significant cost to the exchequer, should be progressively rolled back in tranches over six to nine months as crude prices stabilise,” the CII said.
The CII surveyed 1,200 companies from the CMIE Prowess database, showing that private sector investment, measured as the annual change in net fixed assets and capital work in progress, rose to Rs 7.7 lakh crore in September 2025, a 67 per cent jump over Rs 4.6 lakh crore a year earlier.
“Manufacturing led the way, accounting for Rs 3.8 lakh crore or nearly half of total private capex, with metals, automobiles and chemicals at the forefront. Services contributed Rs 3.1 lakh crore, or about 40 per cent, driven by trading, communications and IT/IteS,” it stated.
Commenting on the analysis, CII director general Chandrajit Banerjee said that buoyed by this strengthening cycle, the CII has appealed to industry to step forward and shoulder its share of the national burden during the ongoing period of global stress.
“The CII’s five-point agenda also suggests member companies to commit to a 3 to 5 per cent reduction in fuel and power consumption over the next two quarters through process optimisation, efficient logistics, fleet electrification and accelerated renewable power purchase agreements,” it said.
Besides, it also proposes that larger member corporates could commit to a voluntary 45-day MSME payment guarantee, backed by aggressive use of the TReDS platform and supply-chain finance, to ease working capital pressure on small enterprises during this volatile period.
