Indian businesses are gearing up for a massive spending spree, with capital expenditures expected to skyrocket to $800-$850 billion over the next five years. According to S&P Global Ratings, this surge will be fueled by strong operating cash flows and robust domestic funding opportunities. The report highlights that, barring major macroeconomic disruptions, these investments will expand business operations without straining corporate debt levels. With lean balance sheets and supportive government policies, companies are primed for sustained growth.
Key sectors like power (especially renewables), airlines, and emerging technologies like green hydrogen will dominate spending, accounting for nearly 75% of the projected capex increase. Aviation alone could see investments in new aircraft surpass $100 billion, while airport infrastructure may double or even triple. Traditional industries such as steel, cement, and telecom will grow at a steadier 30-40% clip—still strong, but more measured compared to high-growth sectors.
Strong financial health is a major factor driving this optimism. Corporate India has significantly reduced leverage over the past few years, and cash flows are now 60-100% higher than five years ago. Even in capital-intensive fields like utilities (excluding renewables) and new ventures such as semiconductors and battery plants, large firms and conglomerates are leading the charge with disciplined debt management. If executed well, this spending wave could unlock long-term efficiency gains and solidify India’s position as a global economic force.