India's private sector capex grew at 19.8% CAGR from 2021 to 2025, mainly funded by internal cash flows.

India's private capital expenditure (capex) grew robustly at a CAGR of 19.8% from FY21 to FY25E, primarily driven by sectors like oil and gas, power, and automobiles. The capex growth didn't boost banking credit, as most spending was funded by internal cash flows. Central government capex also surged, while state government capex grew more slowly. Top 250 private companies spent Rs 29.6 trillion on capex from FY20 to FY24, using only about 57% of their operational cash flows.