The aggregate private capex in the financial year 2024 (FY24) slowed down marginally to Rs 9.4 trillion as compared to Rs 9.5 trillion in FY23, a study conducted by Care Ratings on the annual statements of 1,074 listed non-financial companies showed.

       The top five sectors in which private capex was concentrated were oil and petrochemicals (21 per cent share in total), power (12.8 per cent), telecom (12.8 per cent), automobile and ancillaries (7.4 per cent), and iron and steel (7.1 per cent) in FY24, the study showed.

       The study showed that there has been a steady decline in private capex in sectors such as iron and steel (-4.4 per cent), non-ferrous metals (-15.4 per cent), healthcare (-50.1 per cent), and retail (-55.3 per cent) in FY24.

       The Care study, which quoted CMIE data, said the data on new investment projects announced by India Inc -- which indicates investment intentions of the corporates -- were lower by 29.5 per cent year-on-year (Y-o-Y) in the first half FY25, whereas investment projects completed dropped by 53 per cent Y-o-Y in the same period.

       “Not only were the investment announcements and completions lower than a year ago, but they also fell short of the first half (H1) average seen over the last decade,” the Care report said.

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       This is mainly because of poor data for Q1FY25 due to election-related restrictions and uncertainties. While the data for both completions and announcements show an improvement in Q2FY25, it remains below the quarterly average seen in the last three years.

       In terms of composition, the investment announcements in the first half of FY25 have been supported by the private sector with a share of 71 per cent.

       However, project completions during the period showed a roughly equivalent share of the government as well as the private sector. The management commentary from top private companies post September quarter results shows muted investment in the rest of the fiscal 2025.

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