**Executive Summary**
This document presents the government's response to Starred Question No. 9 in Lok Sabha, concerning the slowdown in corporate investment in the country. The question was posed by Dr. Prabha Mallikarjun and answered by the Minister of Finance and Corporate Affairs on December 1, 2025. The document addresses whether a study was conducted on the investment slowdown, the measures taken to revive investment, and steps to promote investment in Tier-2 and Tier-3 cities.
**Key Points / Main Content**
* **Study on Corporate Investment Slowdown:**
* The government has *not* conducted or commissioned a study to assess the slowdown in corporate investments.
* 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.
* 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.
* **Measures to Revive Corporate Investment:**
* The government has undertaken various measures to facilitate corporate investment and improve business sentiment.
* These measures include policies 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.
* These measures are aimed at promoting corporate investment and industrial expansion.
**Impact Analysis**
**Ministry of Finance and Corporate Affairs**
* **Impact:** The Ministry has provided the government's stance and actions regarding the slowdown in corporate investments.
* **Action Required:** The Ministry is required to implement and monitor the effectiveness of the mentioned policies aimed at promoting corporate investment and economic growth.
**Parliamentary Standing Committee**
* **Impact:** The Parliamentary Standing Committee recommendations led the National Statistical Office to develop a comprehensive methodology to capture capital expenditure (CAPEX) data from the private sector
* **Action Required:** The Parliamentary Standing Committee is required to review the effectiveness of the implemented methodology.
**National Statistical Office**
* **Impact:** NSO had 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.
* **Action Required:** NSO is required to continue forward-looking Surveys.
**Corporate Sector**
* **Impact:** Potentially benefits from the various government initiatives and policies aimed at improving the business environment and promoting corporate investment.
* **Action Required:** Should explore and leverage the benefits offered by the government initiatives to enhance their investment and expansion plans.
**Citizens / Economy**
* **Impact:** The policies aimed at boosting corporate investment are expected to lead to economic growth, balanced regional development, and increased employment opportunities.
* **Action Required:** None.
Key Entities Referenced
Production Linked Incentive (PLI) Schemes: A scheme aimed at boosting domestic manufacturing and attracting large investments in key sectors.
Ministry of Finance: The primary ministry responsible for economic affairs and corporate investment.
Business Reforms Action Plan (BRAP): A plan to improve the ease of doing business across states and Union Territories.
Lok Sabha: The lower house of the Parliament of India, where the starred question was raised.
Ease of Doing Business: Government initiatives focused on improving the regulatory environment and facilitating business operations.
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 20251. 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.
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1 https://www.mospi.gov.in/sites/default/files/press_release/press_note_CAPEX_25042025_Final_29042025.pdf