The Ministry of Statistics and Programme Implementation is conducting its first private capex survey to capture capital expenditure plans from 6,000-7,000 companies across 10-15 sectors, emphasizing transparency and anonymity in reporting. Results will reflect spending intentions from FY22 to FY26, providing insights into the private sector’s impact on GDP, especially in light of increased government investments.
The Ministry of Statistics and Programme Implementation (MoSPI) has initiated its inaugural private capital expenditure (capex) survey aimed at tracking investments across 10 to 15 key sectors. This pioneering effort will encompass the capital expenditure plans of significant companies, which account for approximately 70-80% of output in critical areas, including infrastructure, consumer durables, fast-moving consumer goods (FMCG), finance, energy, capital goods, information technology services, and real estate. The survey, slated to commence in October and conclude in December, will utilize a sample of 6,000 to 7,000 companies. Notably, while participation will emphasize larger organizations due to their substantial sector contributions, the survey will maintain the anonymity of individual firms, presenting the data on a sectoral basis without disclosing company identities. To enhance the accuracy and efficiency of data collection, the survey will be conducted electronically. Artificial intelligence (AI) will initially scrutinize responses to identify outliers and data duplication, followed by human review to ensure quality. The results are expected to illustrate capex trends for fiscal years 2022 through 2026, with findings to be publicly released in February of the subsequent year. The impetus for this survey arises from the sluggish private sector capital expenditure growth observed post-pandemic, necessitating increased government expenditure on infrastructure. MoSPI’s initiative aims to critically assess the private sector’s contribution to the GDP, particularly with the government setting a historic public capex allocation of ₹11.11 trillion for 2024-25, representing approximately 3.4% of the GDP.
Capital expenditure is crucial for economic growth as it encompasses investments made by businesses to acquire or upgrade physical assets, thereby enhancing output capabilities. Since the COVID-19 pandemic, private sector spending in India has been muted, with the government taking on a more significant role in financing infrastructure projects. To better understand the landscape of private investments, MoSPI’s new survey will provide vital insights into capital allocation trends among leading companies in various sectors, showcasing their impact on the economy over the next few years.
In summary, MoSPI’s inaugural private capex survey represents a strategic effort to gain insights into capital investment patterns across major sectors. By focusing on leading companies while ensuring anonymity in reporting, the survey aims to highlight the private sector’s role in contributing to GDP growth amid a backdrop of increased government capital expenditure. The anticipated outcomes of this survey are expected to inform policy decisions and assist in projecting future economic growth rates based on sectoral investment trends.
Original Source: www.livemint.com
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