India Factory Investment Falls 8% Despite Record Hiring

Factories in India bought less new equipment and machinery in FY25.

This spending is called gross fixed capital formation.

It fell by 8% to Rs 63,497 crore.

This was the first such decrease since the pandemic.

Investment had grown sharply in the previous two years.

It rose 77% in FY23 and 18% in FY24.

At the same time, factories hired more workers.

This means investment and hiring moved in opposite directions during FY25.