New Delhi, May 10 -- The government's strong capital expenditure programme has triggered a revival in private investment and growth in their order book, Confederation of Indian Industry (CII) said on Sunday.

The industry lobby urged businesses to "absorb a meaningful share of input cost pressures within its own margins," and asked the government to slowly phase out the March excise duty cut on petrol and diesel over a 6-9 month period.

Government spending on asset creation is crowding in private capex, which rose 67% year-on-year to Rs.7.7 trillion in the year to September 2025, CII said, citing an analysis of nearly 1,200 companies.

Manufacturing led the way, accounting for Rs.3.8 trillion or nearly half of total private capex, led by...