Private sector capital investment is expected to climb 21.5 per cent to Rs 2.67 lakh crore in 2025-26, aided by strong macroeconomic fundamentals and a 100-basis-point policy rate cut, according to an article in the Reserve Bank of India’s August bulletin.The article, titled Private Corporate Investment: Growth in 2024-25 and Outlook for 2025-26, said Indian companies entered the fiscal year with healthier balance sheets, stronger cash buffers, improved profitability, and better access to diversified funding sources despite global uncertainties, PTI reported.The authors — Snigdha Yogindran, Sukti Khandekar, Rajesh B Kavediya, and Aloke Ghosh from RBI’s Department of Statistics and Information Management — noted that continued policy thrust on infrastructure, sustained disinflation, lower interest rates, easy liquidity, and higher capacity utilisation are fostering a conducive environment for private investment.“The phasing profile of the pipeline projects based on all channels of financing taken together, suggests that the envisaged capex is estimated at Rs 2,67,432 crore in 2025-26 as against Rs 2,20,132 crore in 2024-25,” the article stated.The infrastructure sector remains the largest recipient of envisaged investment, with the power industry leading the segment. The article highlighted that the bulk of spending is expected in greenfield projects, pointing to both cyclical recovery and structural capacity building.While the overall outlook remains cautiously optimistic, the authors flagged risks from geopolitical tensions, global demand slowdown, and other external uncertainties.“The ability of firms to convert intentions into execution will be critical in shaping the next phase of India’s growth. Sustained monitoring of project implementation and supportive policy measures will be vital to translating this momentum into durable economic gains,” it added.The RBI clarified that the views expressed are those of the authors and do not represent the official stance of the central bank.