Lok Sabha Question No. 9 (STARRED), answered on 2025-12-01
Subject: Slowdown in Corporate Investment in the Country
Ministry: FINANCE
Asked by: Dr. Prabha Mallikarjun

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA STARRED QUESTION NO. 9

ANSWERED ON MONDAY, DECEMBER 01, 2025/ AGRAHAYANA 10, 1947 (SAKA)

## SLOWDOWN IN CORPORATE INVESTMENT IN THE COUNTRY

## 9 . Dr. Prabha Mallikarjun:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has conducted or commissioned any study to assess the recent slowdown in corporate investments in the country;
- (b)  if  so,  the  details  of  the  key  findings  of  such  study/the  factors  identified  as responsible for the decline in investment levels;
- (c)  whether  the  Government  has  taken  any  specific  policy  measures  to  revive corporate investment and improve business sentiment;

(d) if so, the details of such measures along with the expected outcomes thereof in boosting corporate growth and employment generation; and

- (e) the steps taken by the Government to promote corporate investment and industrial expansion in Tier-2 and Tier-3 cities to ensure balanced regional development and job creation?

## ANSWER

THE MINISTER OF FINANCE AND CORPORATE AFFAIRS [SMT. NIRMALA SITHARAMAN]

(a), (b), (c), (d) & (e): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PART (a), (b), (c), (d) & (e) OF LOK SABHA STARRED QUESTION NO. 9 TO BE ANSWERED ON 1ST DECEMBER, 2025  REGARDING  'SLOWDOWN  IN  CORPORATE  INVESTMENT  IN  THE COUNTRY'

(a) & (b): No, Ma'am. Government has not conducted or commissioned any study to assess slowdown in corporate investments in the country.

However, in 2022-23, the Parliamentary Standing Committee had recommended that the  Ministry  of  Statistics  and  Programme  Implementation  (MoSPI)  develop  a comprehensive methodology to capture capital expenditure (CAPEX) data from the private  sector.  Responding  to  this  recommendation,  the  National  Statistical  Office (NSO) conducted the inaugural Forward-Looking Survey on Private Sector CAPEX Investment Intentions between November 2024 and January 2025 and the findings were released in April 2025 1 . The results of this Survey show an overall increase of 66.3% in aggregate capex over the four-year period from 2021-22 to 2024-25.

(c), (d) & (e): Over the years, Government has undertaken various measures, from time  to  time,  to  facilitate  corporate  investment  and  improve  business  sentiments. These include policy measures for improvement in Ease of Doing Business, National Manufacturing Mission, Plug-and-Play Industrial Parks, Bharat Trade Net, transparent and investor-friendly Foreign Direct Investment (FDI) policy, Taxation policy reforms, thrust on Aatmanirbhar Bharat and Startup India, Production Linked Incentive (PLI) Schemes for key sectors of the economy, Business Reforms Action Plan (BRAP) to improve the ease of doing business across states and Union Territories (UTs), National framework for Global Capability Centres and PM Gati Shakti, among others. The host of measures introduced by the government have promoted corporate investment and industrial expansion across the country.

*****

1  https://www.mospi.gov.in/sites/default/files/press\_release/press\_note\_CAPEX\_25042025\_Final\_29042025.pdf