Private Capex to Drop 25% in FY26, Finance Ministry Cautions

A government survey indicates that private companies plan to spend less money on new projects (capex) in the coming year.

Specifically, spending is expected to drop by 25%.

This is because of worries about the global economy.

However, some sectors like manufacturing, health, and education plan to increase spending.

The Finance Ministry is also concerned about these global issues.

It stated that uncertainty may make private companies hesitant to invest.

Although the economy is doing well, global events may upset this balance.

The ministry suggests that action is needed to maintain economic growth.