India is witnessing broad-based economic growth, with rising capacity utilisation encouraging companies to step up capital expenditure, FICCI President and RPG Group Vice Chairman Anant Goenka said on September 29, 2026. He said improving demand across sectors is creating greater confidence among businesses to expand investments.Key HighlightsFICCI President Anant Goenka said India is seeing broad-based economic growth.Rising capacity utilisation is encouraging companies to increase capital expenditure.The automobile sector is recording particularly strong growth and supporting its wider supply chain.Higher commodity prices are continuing to put pressure on corporate margins.Goenka said crude oil prices rising to around 0 per barrel or above are adding to input costs.Rising Capacity Utilisation Supports Private CapexSpeaking to IANS on the sidelines of the FICCI FRAMES event in Mumbai, Goenka said companies are increasingly investing as capacity utilisation improves.He noted that businesses are becoming more confident about expanding their investments as demand conditions strengthen across different industries. The trend points towards a fresh private-sector capex cycle, with companies adding capacity to respond to improving demand.The development follows earlier comments from Goenka that rising capacity utilisation could encourage greenfield investments and support a revival in private capital expenditure.Automobile Sector Drives Wider GrowthGoenka highlighted the automobile sector as one of the areas experiencing particularly strong growth. According to him, stronger activity in automobiles is creating positive spillover effects across the wider value chain.This includes manufacturers and suppliers connected to the automotive ecosystem, helping broader industrial activity.Recent economic data has also pointed to increasing private-sector investment. Reuters reported that private-sector capital investment rose 11.9% year-on-year in the April-June 2026 quarter, while gross fixed capital formation increased to 34.3%.Commodity Prices Remain a ChallengeDespite the improving investment environment, Goenka cautioned that companies continue to face pressure on profit margins because of higher commodity prices.He said businesses are passing some of the increased costs on to consumers, but there is generally a time lag before the full impact reaches prices. He specifically pointed to crude oil, saying prices that were around per barrel had risen to around 0 or higher.Higher energy and raw-material costs could therefore remain an important factor for businesses as they plan new investments and expand production.India’s Investment CycleThe increase in private capex comes amid broader efforts to strengthen manufacturing and investment in India. Goenka has previously said FICCI wants to raise manufacturing's contribution to GDP over time while supporting research and development, supply-chain resilience, skills and ease of doing business.With capacity utilisation improving and demand conditions strengthening, companies are now assessing whether additional investments are needed to meet future requirements. The pace of this investment cycle will also depend on input costs, demand sustainability and overall economic conditions.
