Reserve Bank of India Projects Rs 3.2 Lakh Crore Private Capex

The Reserve Bank of India estimated in its September Bulletin that private corporate capital expenditure will reach Rs 3.2 lakh crore in 2026-27. This projection represents an increase from the Rs 2.6 lakh crore estimated for 2025-26, based on a pipeline of projects funded through initial public offerings, external commercial borrowings, banks, and financial institutions.

Investment activity strengthened during the 2025-26 financial year, with projects sanctioned by financial institutions and banks reaching a record Rs 4.4 lakh crore. Infrastructure projects, particularly in roads, bridges, and the power sector, drove this growth, accounting for 54.2% of sanctioned costs in FY26. Greenfield projects made up 89.2% of those costs, indicating a period of significant capacity expansion.

Despite the positive outlook, the central bank warned that trade policy volatility and geopolitical tensions could create global uncertainties that may temper future investment sentiment.