India Q4FY26 Capital Expenditure Decline

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Total capital expenditure (capex), combining government and private investment, fell 54.9 percent year-on-year to Rs 9.1 lakh crore in Q4FY26, marking the sharpest quarterly decline in over five years. The decline reflects a shift in focus from launching new projects to completing existing ones, with private capex contracting 47.5 percent and government capex dropping 67 percent. The government is focusing on project consolidation over expansion, while private sector investment also saw a sharp correction. Sectoral spending is rebalancing towards basic metals, renewable energy, road infrastructure, and digital infrastructure such as data centres.