New Delhi, Sept. 29 -- Private investment as a share of India's GDP declined to 10.3% in FY25 from 10.9% in FY23 despite record corporate profits, tax cuts, production-linked incentive schemes and higher public infrastructure spending aimed at crowding in private capital, according to a paper by the National Institute of Public Finance and Policy (NIPFP) reviewed by Mint.

Companies increasingly preferred to accumulate cash than undertake greenfield capital expenditure, NIPFP said in its August 2026 policy brief titled Navigating India's Private Capex.

The institute said the private investment cycle is undergoing a structural shift, with capital increasingly moving towards renewable energy, data centres, electronics and steel even as tra...